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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 14.70, while its industry has an average P/E of 25.68. Over the last 12 months, ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 10.43.
Investors should also note that ARCB holds a PEG ratio of 1.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARCB's PEG compares to its industry's average PEG of 2.20. 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 1.73.
Another valuation metric that we should highlight is ARCB's P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with 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 1.10 and as low as 0.54, with a median of 0.91.
Finally, our model also underscores that ARCB has a P/CF ratio of 5.81. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid 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 5.96 and as low as 2.78, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcBest is likely undervalued currently. And when considering the strength of its earnings outlook, ARCB sticks out at as one of the market's strongest value stocks.
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Is ArcBest (ARCB) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 14.70, while its industry has an average P/E of 25.68. Over the last 12 months, ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 10.43.
Investors should also note that ARCB holds a PEG ratio of 1.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARCB's PEG compares to its industry's average PEG of 2.20. 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 1.73.
Another valuation metric that we should highlight is ARCB's P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with 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 1.10 and as low as 0.54, with a median of 0.91.
Finally, our model also underscores that ARCB has a P/CF ratio of 5.81. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid 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 5.96 and as low as 2.78, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcBest is likely undervalued currently. And when considering the strength of its earnings outlook, ARCB sticks out at as one of the market's strongest value stocks.