Will Grand Canyon investors switch to ArcBest (USA Stocks:ARCB)?

ARCB Stock

USD 91.00 0.03 0.033%

Macroaxis Story

It looks like Grand Canyon will continue to recover much faster as its share price surged up 0.41% today to ArcBest Corp's 2.64%. As many rational traders are trying to avoid road & rail space, it makes sense to go over ArcBest Corp a little further and understand how it stands against Grand Canyon and other similar entities. We are going to analyze some of the competitive aspects of both ArcBest and Grand.

Published over a month ago

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Reviewed by Raphi Shpitalnik

By analyzing existing fundamental indicators between ArcBest Corp and Grand, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Grand with a short position in ArcBest Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ArcBest Corp has an asset utilization ratio of 188.39 percent. This suggests that the company is making $1.88 for each dollar of assets. An increasing asset utilization means that ArcBest Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Will Grand Canyon investors switch to ArcBest (USA Stocks:ARCB)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as ArcBest or Allegiant is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending ArcBest Corp 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. ArcBest one year expected dividend income is about USD0.32 per share.

As of March 29, 2023, Payment of Dividends and Other Cash Distributions is expected to decline to about (11.7 M). In addition to that, Dividend Yield is expected to decline to 0.007732.

	Last Reported	Projected for 2023
Payment of Dividends and Other Cash Distributions	-10.8 M	-11.7 M
Dividend Yield	0.008	0.007732
Dividends per Basic Common Share	0.56	0.46

Investing in dividend-paying stocks, such as ArcBest Corp is one of the few strategies that are good for long-term investment. 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.

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.

Correlation Between ArcBest and Allegiant Travel

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding ArcBest Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Allegiant Travel to your portfolio. If Allegiant Travel is not perfectly correlated to ArcBest Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When ArcBest Corp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between ARCB and ALGT for more information.

Note

Are you currently holding both ArcBest Corp and Allegiant Travel in your portfolio?

Please note if you are using this as a pair-trade strategy between ArcBest Corp and Allegiant Travel, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Sale by Zakon Alan J of 1300 shares of ArcBest Corp

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 sale of common stock par value 0.01 per share by Zakon Alan J, the corporate stakeholder, on 20th of March 2023. This event was filed by Arcbest Corp with SEC on 2008-05-08. 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.

Is ArcBest Corp valued fairly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check ArcBest Corp revenue. Based on the latest financial disclosure, ArcBest Corp reported 3.98 B of revenue. This is 13.76% higher than that of the Road & Rail sector and 30.35% higher than that of the Industrials industry. The revenue for all United States stocks is 57.82% higher than that of ArcBest Corp. As for Grand Canyon we see revenue of 896.56 M, which is 70.64% lower than that of the Industrials

	ArcBest	3.98 Billion
	Sector	3.05 Billion
	Grand	896.56 Million

4 B

ArcBest

3.1 B

Sector

896.6 M

Grand

Will ArcBest Corp current rise continue?

Coefficient of variation is down to 1146.31. It may suggest a possible volatility slip. ArcBest Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.08. However, we advise investors to further question ArcBest Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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 bullish 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.

The Bottom Line

Whereas many of the other players within the trucking industry are still a little expensive, even after the recent corrections, ArcBest Corp may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in ArcBest as the risk-reward trade off is appealing enough to hold a position. 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.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. 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 Aina Ster 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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