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ARCB or SAIA: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB - Free Report) or Saia (SAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
ArcBest and Saia are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARCB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARCB currently has a forward P/E ratio of 17.65, while SAIA has a forward P/E of 35.90. We also note that ARCB has a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SAIA currently has a PEG ratio of 1.55.
Another notable valuation metric for ARCB is its P/B ratio of 2.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 6.56.
These metrics, and several others, help ARCB earn a Value grade of B, while SAIA has been given a Value grade of C.
ARCB has seen stronger estimate revision activity and sports more attractive valuation metrics than SAIA, so it seems like value investors will conclude that ARCB is the superior option right now.
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ARCB or SAIA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB - Free Report) or Saia (SAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
ArcBest and Saia are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARCB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARCB currently has a forward P/E ratio of 17.65, while SAIA has a forward P/E of 35.90. We also note that ARCB has a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SAIA currently has a PEG ratio of 1.55.
Another notable valuation metric for ARCB is its P/B ratio of 2.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 6.56.
These metrics, and several others, help ARCB earn a Value grade of B, while SAIA has been given a Value grade of C.
ARCB has seen stronger estimate revision activity and sports more attractive valuation metrics than SAIA, so it seems like value investors will conclude that ARCB is the superior option right now.