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ARCB or JBHT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Transportation - Truck sector have probably already heard of ArcBest (ARCB - Free Report) and JB Hunt (JBHT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, ArcBest has a Zacks Rank of #1 (Strong Buy), while JB Hunt has a Zacks Rank of #2 (Buy). This means that ARCB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARCB currently has a forward P/E ratio of 12.69, while JBHT has a forward P/E of 28.85. We also note that ARCB has a PEG ratio of 0.38. 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. JBHT currently has a PEG ratio of 1.92.
Another notable valuation metric for ARCB is its P/B ratio of 2.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JBHT has a P/B of 7.09.
These are just a few of the metrics contributing to ARCB's Value grade of B and JBHT's Value grade of C.
ARCB has seen stronger estimate revision activity and sports more attractive valuation metrics than JBHT, so it seems like value investors will conclude that ARCB is the superior option right now.
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ARCB or JBHT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Transportation - Truck sector have probably already heard of ArcBest (ARCB - Free Report) and JB Hunt (JBHT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, ArcBest has a Zacks Rank of #1 (Strong Buy), while JB Hunt has a Zacks Rank of #2 (Buy). This means that ARCB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARCB currently has a forward P/E ratio of 12.69, while JBHT has a forward P/E of 28.85. We also note that ARCB has a PEG ratio of 0.38. 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. JBHT currently has a PEG ratio of 1.92.
Another notable valuation metric for ARCB is its P/B ratio of 2.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JBHT has a P/B of 7.09.
These are just a few of the metrics contributing to ARCB's Value grade of B and JBHT's Value grade of C.
ARCB has seen stronger estimate revision activity and sports more attractive valuation metrics than JBHT, so it seems like value investors will conclude that ARCB is the superior option right now.