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

ArcBest (ARCB) closed the most recent trading day at $104.24, moving -1.74% from the previous trading session. This change lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.

- Zacks

Prior to today's trading, shares of the freight transportation and logistics company had lost 4% over the past month. This has lagged the Transportation sector's loss of 3.62% and the S&P 500's loss of 0.13% in that time.

ArcBest will be looking to display strength as it nears its next earnings release. On that day, ArcBest is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 125.77%. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 33.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.73 per share and revenue of $3.9 billion. These totals would mark changes of +139.32% and +32.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ArcBest. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.88% higher. ArcBest is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, ArcBest is currently trading at a Forward P/E ratio of 13.72. Its industry sports an average Forward P/E of 16.89, so we one might conclude that ArcBest is trading at a discount comparatively.

Meanwhile, ARCB's PEG ratio is currently 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 1.24 as of yesterday's close.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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