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ArcBest (ARCB) Dips More Than Broader Markets: What You Should Know

ArcBest (ARCB) closed at $66.12 in the latest trading session, marking a -0.84% move from the prior day.

This story originally appeared on Zacks

ArcBest (ARCB) closed at $66.12 in the latest trading session, marking a -0.84% move from the prior day. This move lagged the S&P 500's daily loss of 0.46%.

- Zacks

Heading into today, shares of the freight transportation and logistics company had lost 3.7% over the past month, lagging the Transportation sector's gain of 1.11% and the S&P 500's gain of 1.93% in that time.

ARCB will be looking to display strength as it nears its next earnings release. In that report, analysts expect ARCB to post earnings of $1.96 per share. This would mark year-over-year growth of 60.66%. Our most recent consensus estimate is calling for quarterly revenue of $953.63 million, up 19.96% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.28 per share and revenue of $3.62 billion, which would represent changes of +94.43% and +23.14%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ARCB. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.46% higher within the past month. ARCB is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, ARCB is currently trading at a Forward P/E ratio of 10.63. Its industry sports an average Forward P/E of 16.23, so we one might conclude that ARCB is trading at a discount comparatively.

It is also worth noting that ARCB currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Truck stocks are, on average, holding a PEG ratio of 1.03 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 52, which puts it in the top 21% 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.

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