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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.96, while its industry has an average P/E of 17.56. Over the past 52 weeks, ARCB's Forward P/E has been as high as 97.24 and as low as 5.26, with a median of 8.85.
Another valuation metric that we should highlight is ARCB's P/B ratio of 2.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.84. Within the past 52 weeks, ARCB's P/B has been as high as 3.30 and as low as 1.62, with a median of 2.19.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCB has a P/S ratio of 0.46. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that ARCB has a P/CF ratio of 5.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.87. Over the past year, ARCB's P/CF has been as high as 11.12 and as low as 4.14, with a median of 6.92.
Investors could also keep in mind KnightSwift Transportation (KNX - Free Report) , an Transportation - Truck stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
KnightSwift Transportation is currently trading with a Forward P/E ratio of 11.29 while its PEG ratio sits at 0.75. Both of the company's metrics compare favorably to its industry's average P/E of 17.56 and average PEG ratio of 1.19.
KNX's price-to-earnings ratio has been as high as 13.50 and as low as 8.56, with a median of 10.83, while its PEG ratio has been as high as 0.90 and as low as 0.57, with a median of 0.72, all within the past year.
Additionally, KnightSwift Transportation has a P/B ratio of 1.37 while its industry's price-to-book ratio sits at 3.84. For KNX, this valuation metric has been as high as 1.62, as low as 1.09, with a median of 1.36 over the past year.
These are only a few of the key metrics included in ArcBest and KnightSwift Transportation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ARCB and KNX look like an impressive value stock at the moment.
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Should Value Investors Buy ArcBest (ARCB) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.96, while its industry has an average P/E of 17.56. Over the past 52 weeks, ARCB's Forward P/E has been as high as 97.24 and as low as 5.26, with a median of 8.85.
Another valuation metric that we should highlight is ARCB's P/B ratio of 2.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.84. Within the past 52 weeks, ARCB's P/B has been as high as 3.30 and as low as 1.62, with a median of 2.19.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCB has a P/S ratio of 0.46. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that ARCB has a P/CF ratio of 5.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.87. Over the past year, ARCB's P/CF has been as high as 11.12 and as low as 4.14, with a median of 6.92.
Investors could also keep in mind KnightSwift Transportation (KNX - Free Report) , an Transportation - Truck stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
KnightSwift Transportation is currently trading with a Forward P/E ratio of 11.29 while its PEG ratio sits at 0.75. Both of the company's metrics compare favorably to its industry's average P/E of 17.56 and average PEG ratio of 1.19.
KNX's price-to-earnings ratio has been as high as 13.50 and as low as 8.56, with a median of 10.83, while its PEG ratio has been as high as 0.90 and as low as 0.57, with a median of 0.72, all within the past year.
Additionally, KnightSwift Transportation has a P/B ratio of 1.37 while its industry's price-to-book ratio sits at 3.84. For KNX, this valuation metric has been as high as 1.62, as low as 1.09, with a median of 1.36 over the past year.
These are only a few of the key metrics included in ArcBest and KnightSwift Transportation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ARCB and KNX look like an impressive value stock at the moment.