Subscribe to Entrepreneur for $5
Subscribe

ArcBest (ARCB) Gains As Market Dips: What You Should Know

ArcBest (ARCB) closed the most recent trading day at $105.87, moving +1.44% from the previous trading session.

By
This story originally appeared on Zacks

ArcBest (ARCB) closed at $105.87 in the latest trading session, marking a +1.44% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.05%.

- Zacks

Prior to today's trading, shares of the freight transportation and logistics company had lost 4.02% over the past month. This has was narrower than the Transportation sector's loss of 4.65% and lagged the S&P 500's loss of 0.62% in that time.

ArcBest will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.19, up 125.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 33.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.73 per share and revenue of $3.9 billion, which would represent changes of +139.32% and +32.6%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ArcBest. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.88% higher. ArcBest is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note ArcBest's current valuation metrics, including its Forward P/E ratio of 13.49. For comparison, its industry has an average Forward P/E of 16.7, which means ArcBest is trading at a discount to the group.

It is also worth noting that ARCB currently has a PEG ratio of 0.3. 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. ARCB's industry had an average PEG ratio of 1.22 as of yesterday's close.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% 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.



Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

ArcBest Corporation (ARCB): Free Stock Analysis Report

 

To read this article on Zacks.com click here.