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ArcBest (ARCB) Dips More Than Broader Markets: What You Should Know

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ArcBest (ARCB - Free Report) closed the most recent trading day at $38.32, moving -0.67% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.48%.

Coming into today, shares of the freight transportation and logistics company had lost 18.09% in the past month. In that same time, the Transportation sector lost 8.38%, while the S&P 500 lost 4.53%.

ARCB will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2018. The company is expected to report EPS of $1.10, up 86.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $818.70 million, up 10% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $3.08 billion, which would represent changes of +145.11% and +9.13%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ARCB. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. ARCB is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that ARCB has a Forward P/E ratio of 11.82 right now. This represents a discount compared to its industry's average Forward P/E of 16.29.

We can also see that ARCB currently has a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Truck stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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