ARCB Arcbest stock Story

ARCB -  USA Stock  

USD 54.15  1.37  2.47%

ArcBest Earnings before Tax are projected to increase significantly based on the last few years of reporting. The past year's Earnings before Tax were at 51.47 Million. The current year Enterprise Value is expected to grow to about 919 M, whereas Net Income Per Employee is forecasted to decline to 2,456. ArcBest is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021. While some of us are excited about industrials space, let's try to go over ArcBest in greater detail to make a better evaluation of its fundamental indicators. We will evaluate why we are still confident in anticipation of a recovery. The company current probability of distress is under 31 percent. Will investors continue to be optimistic, or should we expect a sell-off?
Published over six months ago
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Thinking to acquire more of ArcBest (NASDAQ:ARCB)?
ArcBest has performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.4635, which signifies possible diversification benefits within a given portfolio. Let's try to break down what ArcBest's beta means in this case. As returns on the market increase, ArcBest returns are expected to increase less than the market. However, during the bear market, the loss on holding ArcBest will be expected to be smaller as well. Although it is extremely important to respect ArcBest historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing ArcBest technical indicators, you can presently evaluate if the expected return of 0.16% will be sustainable into the future. ArcBest right now shows a risk of 2.62%. Please confirm ArcBest information ratio, treynor ratio, and the relationship between the downside deviation and total risk alpha to decide if ArcBest will be following its price patterns.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Arcbest Corp income statement, its balance sheet, and the statement of cash flows. Potential Arcbest Corp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Arcbest Corp investors may use each financial statement separately, they are all related. The changes in Arcbest Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Arcbest Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Arcbest Corp fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Arcbest Corp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Arcbest Corp shares is the value that is considered the true value of the share. If the intrinsic value of ARCB Arcbest is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Arcbest Corp.
Please read more on our fundamental analysis page.

Are Arcbest Corp Earnings Expected to grow?

The future earnings power of Arcbest Corp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Arcbest Corp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Arcbest Corp stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of ARCB Arcbest expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Arcbest Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Arcbest Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. ARCB Arcbest one year expected dividend income is about $0.13 per share.
The current year Dividend Yield is expected to grow to 0.008474, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (8.8 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-8.2 M-8.8 M
Dividend Yield 0.007  0.008474 
Dividends per Basic Common Share 0.37  0.33 
Investing in stocks that pay dividends, such as stock of Arcbest Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Arcbest Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Arcbest Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Arcbest Corp, but it might be worth checking our own buy vs. sell analysis

Arcbest Corp Gross Profit

Arcbest Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arcbest Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arcbest Corp Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Bona fide gift to Daniel Loe of 600 shares of Arcbest Corp subject to Section 16

Legal trades by Arcbest Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Arcbest insider trading alert for gift of common stock par value $0.01 per share by Daniel Loe, Pres Asl Log Chf Yld Off, on 3rd of June 2021. This event was filed by Arcbest Corp with SEC on 2021-06-03. Statement of changes in beneficial ownership - SEC Form 4. Daniel Loe currently serves as vice president - enterprise customer solutions of Arcbest Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Arcbest Corp valued fairly by the market?

Institutional investors typically avoid acquiring a high percentage of ArcBest stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of ArcBest is distributed among investors.

Ownership Allocation

ArcBest retains a total of 25.44 Million outstanding shares. The majority of ArcBest outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in ArcBest to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in ArcBest. Please pay attention to any change in the institutional holdings of ArcBest as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors4.39
 2017 2018 2019 (projected)
Long Term Debt to Equity0.320.330.35
Interest Coverage10.619.6412.72

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ArcBest has an asset utilization ratio of 224.09 percent. This suggests that the company is making $2.24 for each dollar of assets. An increasing asset utilization means that ArcBest is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
635.4 M
Assets Non Current
914.1 M
Current Assets635.38 Million36.59
Assets Non Current914.06 Million52.64
Goodwill162.99 Million9.39
Tax Assets24.02 Million1.38

Are ArcBest technical ratios showing a correction?

ArcBest current maximum drawdown builds up over 10.44. ArcBest currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.01. However, we do advice investors to further question ArcBest expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on ArcBest

Whereas many other companies within the trucking industry are still a little expensive, even after the recent corrections, ArcBest may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of ArcBest nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ArcBest.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Arcbest Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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