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ARCB vs. JBHT: Which Stock Is the Better Value Option?

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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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both ArcBest and JB Hunt have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 8.41, while JBHT has a forward P/E of 21.97. We also note that ARCB has a PEG ratio of 0.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JBHT currently has a PEG ratio of 1.46.

Another notable valuation metric for ARCB is its P/B ratio of 2.41. 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 6.36.

These metrics, and several others, help ARCB earn a Value grade of A, while JBHT has been given a Value grade of D.

Both ARCB and JBHT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARCB is the superior value option right now.


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J.B. Hunt Transport Services, Inc. (JBHT) - free report >>

ArcBest Corporation (ARCB) - free report >>

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