Last Updated: 09 Nov 2024
Executive Summary
ArcBest Corp (ARCB) is a leading provider of integrated freight forwarding and logistics services. The company has a strong financial position with a market capitalization of $2.72 billion and an EBITDA of $338.51 million. ARCB's trailing price-to-earnings (PE) ratio of 14.5 and forward PE of 14.84 indicate that the stock is fairly valued compared to its peers. The company's strong fundamentals, including a profit margin of 4.54%, an operating margin of 3.89%, and a return on equity of 15.3%, suggest that ARCB is well-positioned for future growth.
Company Overview
ArcBest Corp is headquartered in Fort Smith, Arkansas and offers a range of freight forwarding and logistics services, including truckload, less-than-truckload, and intermodal transportation. The company also provides specialized services such as temperature-controlled shipping and hazardous materials handling. ARCB has a network of over 250 service centers and terminals across the United States and Canada.
Fundamental Analysis
ARCB's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.6% over the past five years, and its earnings per share (EPS) have grown at a CAGR of 12.3% over the same period. ARCB's profit margins have also improved in recent years, and the company is now generating a profit margin of 4.54%.
ARCB's balance sheet is also strong. The company has a low level of debt and a strong cash position. ARCB's current ratio is 2.1, and its debt-to-equity ratio is 0.3.
Technical Analysis
ARCB's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, and it has recently broken out of a resistance level at $115. The stock's relative strength index (RSI) is also above 50, indicating that it is in a bullish trend.
Short Term Outlook
ARCB's stock price is expected to continue to rise in the short term. The stock is currently trading at a discount to its analyst target price of $118.33, and it has strong momentum. ARCB's earnings are expected to continue to grow in the coming quarters, and the company is well-positioned to benefit from the continued growth of the e-commerce market.
Long Term Outlook
ARCB's long-term outlook is also positive. The company is a leader in the freight forwarding and logistics industry, and it has a strong track record of growth. ARCB is well-positioned to benefit from the continued growth of the global economy and the increasing demand for freight forwarding and logistics services.
Analyst Recommendations
The majority of analysts who cover ARCB have a buy rating on the stock. The consensus analyst target price for ARCB is $118.33, which represents a potential upside of 1.6% from the current price.
