ArcBest (ARCB) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, ArcBest (ARCB) closed at $76.13, marking a +1.37% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.21%.
Heading into today, shares of the freight transportation and logistics company had gained 12.9% over the past month, outpacing the Transportation sector's loss of 2.01% and the S&P 500's loss of 0.9% in that time.
ARCB will be looking to display strength as it nears its next earnings release. On that day, ARCB is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 62.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $965.47 million, up 21.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.32 per share and revenue of $3.64 billion. These totals would mark changes of +95.67% and +23.74%, respectively, from last year.
Any recent changes to analyst estimates for ARCB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 5.11% higher. ARCB is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note ARCB's current valuation metrics, including its Forward P/E ratio of 11.89. This valuation marks a discount compared to its industry's average Forward P/E of 16.05.
We can also see that ARCB currently has a PEG ratio of 0.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Truck stocks are, on average, holding a PEG ratio of 1.02 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 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ARCB in the coming trading sessions, be sure to utilize Zacks.com.
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