Arcbest Story

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ARCB -- USA Stock  

USD 59.89  1.00  1.70%

It appears ArcBest may not recover as fast as we have hopped for as its price went down 0.61% today. The company current daily volatility is 3.1 percent, with a beta of -0.07 and an alpha of 0.57 over DOW. As some investors are moving away from the current market volatility rise, we are going to go over ArcBest based on how it reacts to economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
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Should you keep an eye on ArcBest (NASDAQ:ARCB) management before March?
ArcBest currently holds roughly 351.06 M in cash with 183.62 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 13.82. 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 224.88 percent. This suggests that the company is making $2.25 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.
Investing in Arcbest Corp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Arcbest Corp along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Arcbest Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Arcbest Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Arcbest Corp. Your research has to be compared to or analyzed against Arcbest Corp's peers to derive any actionable benefits. When done correctly, Arcbest Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Arcbest Corp.

How important is Arcbest Corp's Liquidity

Arcbest Corp financial leverage refers to using borrowed capital as a funding source to finance Arcbest Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arcbest Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Arcbest Corp's total debt and its cash.

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 Correlation with Peers

Investors in Arcbest can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Arcbest Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Arcbest Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Arcbest is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Arcbest for more details

Bona fide gift to David Cobb of 800 shares of ArcBest 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 David Cobb, Vice President - CFO, on 18th of December 2020. This event was filed by Arcbest Corp with SEC on 2020-12-18. Statement of changes in beneficial ownership - SEC Form 4 [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.

What is driving Arcbest Corp Investor Appetite?

ArcBest appears to be very steady, given 1 month investment horizon. ArcBest secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had 0.18% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing ArcBest technical indicators you can presently evaluate if the expected return of 0.56% is justified by implied risk. Please makes use of ArcBest risk adjusted performance of 0.1646, and Mean Deviation of 2.28 to double-check if our risk estimates are consistent with your expectations.
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0.39-0.160.190.61
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

ArcBest has 78 percent chance to finish below $46 next week

The skewness is down to 0.33 as of today. ArcBest currently demonstrates below-verage downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.57. 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.

The Current Takeaway on ArcBest Investment

Whereas many other companies in the trucking industry are either recovering or due for a correction, ArcBest may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of February 2021, we believe that ArcBest is currently overvalued with low chance of financial distress in the next two years. Our actual 30 days advice on the company is Cautious Hold.

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 Achuva Shats 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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