The company has a beta of 2.628. Let's try to break down what Arcbest's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arcbest Corp will likely underperform. The beta indicator helps investors understand whether Arcbest Corp moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Arcbest deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as ArcBest Corp. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for ArcBest Corp
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 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 toward 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. Financial leverage can amplify the potential profits to ArcBest Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ArcBest Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between ArcBest Corp's total debt and its cash.
Is ArcBest Corp valued fairly by the market?
Arcbest Corp exhibits very low volatility with skewness of -0.46 and kurtosis of 0.72. However, we advise investors to further study Arcbest Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arcbest Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arcbest Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Returns Breakdown
| Return on Investment | 9.64 |
| Return on Assets | 0.0324 |
| Return on Equity | 0.0734 |
| Return Capital | 0.0679 |
| Return on Sales | 0.0378 |
Arcbest Corp is epected to finish above $58 in September
The maximum drawdown is down to 17.11 as of today. Arcbest Corp exhibits very low volatility with skewness of -0.46 and kurtosis of 0.72. However, we advise investors to further study Arcbest Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arcbest Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arcbest Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Arcbest Corp
Whereas many other companies in the trucking industry are either recovering or due for a correction, Arcbest may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor drop any shares of Arcbest Corp at this time. The Arcbest Corp risk-reward trade off is not appealing enough to do any trading. 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 Corp.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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
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