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Should Value Investors Buy ArcBest (ARCB) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.58, which compares to its industry's average of 14.98. Over the last 12 months, ARCB's Forward P/E has been as high as 28.44 and as low as 10.08, with a median of 14.60.

Another valuation metric that we should highlight is ARCB's P/B ratio of 1.45. 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 attractive against its industry's average P/B of 2.41. Over the past year, ARCB's P/B has been as high as 1.95 and as low as 1.21, with a median of 1.51.

Finally, investors will want to recognize that ARCB has a P/CF ratio of 5.44. 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. ARCB's P/CF compares to its industry's average P/CF of 8.16. Over the past year, ARCB's P/CF has been as high as 8.06 and as low as 4.60, with a median of 6.35.

These are only a few of the key metrics included in ArcBest's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARCB looks like an impressive value stock at the moment.




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