Are Investors Undervaluing ArcBest (ARCB) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
ArcBest (ARCB) is a stock many investors are watching right now. ARCB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 24.29. Over the past year, ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 11.34.
Investors should also note that ARCB holds a PEG ratio of 1.12. 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. ARCB's industry currently sports an average PEG of 2.08. Over the last 12 months, ARCB's PEG has been as high as 2.19 and as low as 0.92, with a median of 1.48.
We should also highlight that ARCB has a P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.05. Within the past 52 weeks, ARCB's P/B has been as high as 1.16 and as low as 0.54, with a median of 0.91.
Finally, investors will want to recognize that ARCB has a P/CF ratio of 5.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ARCB's P/CF compares to its industry's average P/CF of 14.67. Over the past 52 weeks, ARCB's P/CF has been as high as 6.29 and as low as 2.78, with a median of 4.39.
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.
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