Should You Investigate ArcBest Corporation (NASDAQ:ARCB) At US$81.72?

ArcBest Corporation (NASDAQ:ARCB), might not be a large cap stock, but it saw a significant share price rise of 37% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at ArcBest’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is ArcBest Worth?

According to our valuation model, ArcBest seems to be fairly priced at around 14% below our intrinsic value, which means if you buy ArcBest today, you’d be paying a fair price for it. And if you believe the company’s true value is $94.97, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since ArcBest’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Check out our latest analysis for ArcBest

What kind of growth will ArcBest generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 28% over the next couple of years, the future seems bright for ArcBest. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? ARCB’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on ARCB, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into ArcBest, you'd also look into what risks it is currently facing. While conducting our analysis, we found that ArcBest has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in ArcBest, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.