Back to top

Is ArcBest (ARCB) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.03 right now. For comparison, its industry sports an average P/E of 12.61. Over the last 12 months, ARCB's Forward P/E has been as high as 28.44 and as low as 8.45, with a median of 14.33.

We should also highlight that ARCB has a P/B ratio of 1.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ARCB's current P/B looks attractive when compared to its industry's average P/B of 2.06. Over the past year, ARCB's P/B has been as high as 1.95 and as low as 1.19, with a median of 1.46.

Finally, we should also recognize that ARCB has a P/CF ratio of 4.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ARCB's P/CF compares to its industry's average P/CF of 6.94. ARCB's P/CF has been as high as 8.06 and as low as 4.47, with a median of 5.81, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcBest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARCB feels like a great value stock at the moment.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ArcBest Corporation (ARCB) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in