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ArcBest (ARCB) Gains But Lags Market: What You Should Know

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ArcBest (ARCB) closed at $83.45 in the latest trading session, marking a +1.61% move from the prior day. This change lagged the S&P 500's 1.71% gain on the day.

Prior to today's trading, shares of the freight transportation and logistics company had gained 14.69% over the past month. This has outpaced the Transportation sector's loss of 2.68% and the S&P 500's loss of 2.25% in that time.

Wall Street will be looking for positivity from ARCB as it approaches its next earnings report date. This is expected to be November 2, 2021. The company is expected to report EPS of $2.44, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 26.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.97 per share and revenue of $3.75 billion, which would represent changes of +115.79% and +27.69%, respectively, from the prior year.

Any recent changes to analyst estimates for ARCB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 10.33% higher. ARCB is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ARCB is holding a Forward P/E ratio of 11.78. This represents a discount compared to its industry's average Forward P/E of 15.75.

Also, we should mention that ARCB has a PEG ratio of 0.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Truck was holding an average PEG ratio of 1.04 at yesterday's closing price.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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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