Do ArcBest's (NASDAQ:ARCB) Earnings Warrant Your Attention?

Simply Wall St
·3 min read

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in ArcBest (NASDAQ:ARCB). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

View our latest analysis for ArcBest

ArcBest's Improving Profits

In the last three years ArcBest's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, ArcBest's EPS shot from US$6.74 to US$13.37, over the last year. Year on year growth of 98% is certainly a sight to behold. That could be a sign that the business has reached a true inflection point.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The music to the ears of ArcBest shareholders is that EBIT margins have grown from 5.8% to 8.2% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

earnings-and-revenue-history
earnings-and-revenue-history

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for ArcBest.

Are ArcBest Insiders Aligned With All Shareholders?

It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that ArcBest insiders have a significant amount of capital invested in the stock. Given insiders own a significant chunk of shares, currently valued at US$57m, they have plenty of motivation to push the business to succeed. This would indicate that the goals of shareholders and management are one and the same.

Is ArcBest Worth Keeping An Eye On?

ArcBest's earnings per share have been soaring, with growth rates sky high. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering ArcBest for a spot on your watchlist. You still need to take note of risks, for example - ArcBest has 2 warning signs (and 1 which is potentially serious) we think you should know about.

The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Japan economy expected to shrink in Q1 due to weak consumption - Reuters poll

    Japan's economy likely contracted an annualised 1.5% in the January-March quarter as all key drivers of growth slumped due to an uncertain outlook, a Reuters poll showed, which will probably set back Bank of Japan efforts to raise interest rates. Cabinet Office data due out at 8:50 a.m. on May 16 (2350 GMT on May 15) is expected to show the economy's contraction would be equivalent to monthly decline of 0.4%, according to the poll of 17 economists. The decline followed growth of 0.4% annualised in the last three months of 2023, with the main pillars of GDP collapsing and leaving no growth engine for the January-March quarter.

  • China says it firmly opposes US export control tools

    China firmly opposes the abuse of export control tools such as the U.S. entity list, a foreign ministry spokesperson said on Friday, after the U.S. added 37 Chinese firms to a trade restriction list over national security concerns. China and Russia have the right to carry out normal economic and trade cooperation, and such cooperation should not be disturbed, spokesperson Lin Jian told a regular press conference. He said the United States continues to politicise economic and trade issues and further increase tariffs, abusing the so-called 301 tariff review process, "which is adding insult to injury."

  • London schoolboy, 11, who was 'bottom of the class' joins Mensa

    Dhruv’s father said he previously despaired as he thought his son was ‘not learning anything at all’

  • Ncuti Gatwa: the Rwandan-Scottish actor who is the fifteenth Doctor Who

    He fled Rwanda as a refugee, battled racism in Scotland and endured homelessness in London. Now, he is the star of one of the most beloved TV series of all time

  • First Black ‘Doctor Who’ Ncuti Gatwa Injects Life Into Flagging Series

    Disney+The latest season of Doctor Who—the BBC show’s debut on Disney+, with its first-ever simultaneous worldwide release—comes with a lofty goal. Can it generate a new audience for this decades-old series, now on its fifteenth iteration? A charming new lead in Barbie’s Ncuti Gatwa, a celebrated showrunner, and guest stars like Jonathan Groff and RuPaul's Drag Race’s Jinkx Monsoon go a long way toward achieving that aim. But for viewers not already onboard with the TARDIS-hopping Time Lord (or

  • Harmony Korine’s Unforgettable ‘Aggro Dr1ft’ Is ‘Grand Theft Auto’ on Acid

    Courtesy of EdglrdLike nothing you’ve ever seen, Aggro Dr1ft strives to create not simply something new, but The New, delivering a barrage of sound and image that amalgamates the old and familiar into a fresh, hallucinatory cinematic vision. It’s brilliant. It’s tacky. It’s exhilarating. It’s wearisome. There’s no middle ground with this boundary-pushing whatsit, which will earn reactions as diverse and heated as the various elements that comprise its wholly unique 80 minutes. Destined to be pas

  • Chris Pine’s Disastrous ‘Poolman’ Fashion Is Actually Making Him Hotter

    Monica Schipper/Getty ImagesFriends, I might have a problem. Give me your thoughts on this one: Is it just me, or is Chris Pine slowly ascending to a plane of hotness that most of us cannot even fathom?Every time I see a photo of this man, his beard has gotten bushier, his shorts have gotten shorter, and his sartorial sensibilities have grown more outlandish. While most celebrities keep their street style in a fashionable safe zone, Pine likes to leave the gym in rainbow cardigans, PBS tank tops

  • Porch sues China Construction Bank in US over reinsurance fraud losses

    Porch and its units accused the Chinese lender of conspiring with employees of the now bankrupt Israeli insurance firm Vesttoo to issue dozens of fake reinsurance letters of credit that guaranteed insurance companies access to reinsurance funds, according to a complaint filed to the U.S. Southern District Court of New York on Thursday. Porch and its unit, the Homeowners of America Insurance Co, paid tens of millions of dollars in premiums for this non-existent reinsurance until it emerged in July 2023 that certain letters of credit backstopping Vesttoo's reinsurance transactions were fake, the company said.

  • Are your supplements the equivalent of an ultra-processed food?

    Nutritionist Louise Pyne explores the darker side of mass-produced health boosters

  • UPDATE 1-China says it firmly opposes US export control tools

    China firmly opposes the abuse of export control tools such as the U.S. entity list, a foreign ministry spokesperson said on Friday, after the U.S. added 37 Chinese firms to a trade restriction list over national security concerns. China and Russia have the right to carry out normal economic and trade cooperation, and such cooperation should not be disturbed, spokesperson Lin Jian told a regular press conference.

  • ‘Hacks’ Season 3 Is Going Nuclear on Worst Parts of the Comedy World

    Photo Illustration by Thomas Levinson/The Daily Beast/Getty/MaxThere are fleeting pop culture references throughout the new season of Hacks that seem tailored specifically to make me scream “Ahh!” in delight. They’re sprinkled across the new episodes like a comedic weather event, to the point that watching the series feels like dancing in a rain shower of jokes written just for me. Someone cue up Natasha Bedingfield’s “Unwritten.”Hacks is releasing two episodes each Thursday, and the first of th

  • Fans horrified by Piers Morgan’s ‘excruciating’ ‘unethical’ interview with real-life Baby Reindeer Martha

    Fiona Harvey criticised the TV series as untrue in the sit down chat with Piers Morgan

  • ‘Gasoline Rainbow’: An Instant-Classic Film Just for Gen Alpha

    MUBIThere are many moments in Gasoline Rainbow, the teen road trip drama directed by Bill Ross IV and Turner Ross, that defy classification into either fiction or reality. It’s shot as if an unseen member of the friend group at the core of the film is holding a camera at all times, swinging it around inside a cramped van, jerking it from side to side as they run down empty highways and flat fields. Following today’s teens’ first steps into the wide world of adulthood, Gasoline Rainbow is a melan

  • Campaigners brand Wimbledon's revised expansion plans 'an insult'

    Extra four acres of public parkland deemed “tiny” ahead of Greater London Authority decision on the controversial development

  • More Tory MPs are considering defection to Labour, says Wes Streeting

    Shadow health secretary says party will not accept just any MP after Natalie Elphicke’s move to Labour

  • Music venue's future secure after charity steps in

    The Music Venue Trust has bought the 200-capacity venue in Preston and will act as its landlord.

  • Prince Harry, Meghan arrive in Nigeria for the Invictus Games, to meet with wounded soldiers

    ABUJA, Nigeria (AP) — Prince Harry and his wife Meghan arrived in Nigeria on Friday to champion the Invictus Games, which he founded to aid the rehabilitation of wounded and sick servicemembers and veterans, among them Nigerian soldiers fighting a 14-year war against Islamic extremists. The couple, visiting the West African nation for the first time on the invitation of its military, arrived in the capital, Abuja, early in the morning, according to defense spokesman Brig. Gen. Tukur Gusau. Harry

  • Why Americans are craving outdoor time more than ever

    On average, people need to spend 67 minutes outside each day in order to feel refreshed, according to new research. A poll of 2,000 U.S adults revealed that over half of Americans (57%) are also craving time spent outdoors more now than ever before. Conducted by Talker Research on behalf of RVshare, results found that those who spent time outside said it relaxes them (68%), puts them in a better mood (66%) and helps them clear their head (64%). On the other hand, spending more time inside than preferred can lead to feelings of depression (38%), anxiousness (33%) and loneliness (32%), according to the research.

  • Argentines strike against spending cuts under Javier Milei

    Schools, banks and many shops close across the country, with train and metro services suspended.

  • Rapt Films Boards Queer Sports Drama ‘Riley’ And Will Launch Sales At Cannes Market

    EXCLUSIVE: London-based sales outfit Rapt Films International has acquired worldwide sales rights to Benjamin Howard’s debut US film Riley and will launch sales at the upcoming Cannes Market. The pic charts the life of a talented teenage athlete who begins to unravel when his burgeoning queer identity competes against his idea of what it means …