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ARCB or JBHT: Which Is the Better Value Stock Right Now?
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Investors with an interest in Transportation - Truck stocks have likely encountered both ArcBest (ARCB - Free Report) and JB Hunt (JBHT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, ArcBest has a Zacks Rank of #2 (Buy), while JB Hunt has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARCB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARCB currently has a forward P/E ratio of 18.21, while JBHT has a forward P/E of 29.82. We also note that ARCB has a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JBHT currently has a PEG ratio of 1.82.
Another notable valuation metric for ARCB is its P/B ratio of 2.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JBHT has a P/B of 5.81.
These metrics, and several others, help ARCB earn a Value grade of B, while JBHT has been given a Value grade of D.
ARCB stands above JBHT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARCB is the superior value option right now.
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ARCB or JBHT: Which Is the Better Value Stock Right Now?
Investors with an interest in Transportation - Truck stocks have likely encountered both ArcBest (ARCB - Free Report) and JB Hunt (JBHT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, ArcBest has a Zacks Rank of #2 (Buy), while JB Hunt has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARCB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARCB currently has a forward P/E ratio of 18.21, while JBHT has a forward P/E of 29.82. We also note that ARCB has a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JBHT currently has a PEG ratio of 1.82.
Another notable valuation metric for ARCB is its P/B ratio of 2.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JBHT has a P/B of 5.81.
These metrics, and several others, help ARCB earn a Value grade of B, while JBHT has been given a Value grade of D.
ARCB stands above JBHT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARCB is the superior value option right now.