This trucking company beat analysts’ estimates by $0.11 last quarter and three analysts have increased their EPS estimates for the company in the past 30 days.
ArcBest Corporation (ARCB)
From Upside
A tight trucking market has put ArcBest Corporation (ARCB) in the driver’s seat. The company offers less-than-truckload shipping through ABF Freight, express ground delivery, and household moving under the U-Pack brand.
The company is benefiting from a healthy U.S. economy and surging demand from retailers
and industrial customers hoping to speed up distribution to stores and factories. In addition, a U.S. shortage of trucks and favorable pricing are helping drive profit growth.
Over the last 12 months, the shares have surged 55%, boosted by growth of 6% in sales, 116%
in per-share earnings, and 102% in operating cash flow. For 2018, sales are expected to climb 9%.
The consensus per-share profit estimate is $3.26, up from $1.33. That figure could trend higher given recent operating momentum and the favorable industry backdrop. Yet ArcBest trades at 15 times estimated current-year earnings—21% below the median for its peers in the S&P
1500. ArcBest is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, October 1, 2018