ArcBest is the IBD Stock of The Day for Thursday. Shares of the logistics and trucking company are clearing a buy point near all-time highs.
Fort Smith, Ark.-based ArcBest is a diversified logistics company that offers trucking, freight and transportations services, as well as end-to-end supply-chain management solutions and technology.
Its less-than-truckload trucking fleet provided 65% of its 2023 revenue. The asset-light (or services) side of its business generated 35% of revenue.
The company is coming off a Feb. 6 fourth-quarter report that marked its first earnings gain after four quarters of double-digit declines. ArcBest's revenue fell in the last five quarters, but declines have slowed in the past two periods. Fourth-quarter and full-year earnings both topped analysts forecasts. Revenue came in just ahead of estimates.
ARCB stock received a 12-month price-target hike from Stephens on Feb. 7, to 205 from 165. The note cited strong operational execution in ArcBest's core less-than-truckload business. Stephens maintained an overweight rating on the stock.
ArcBest on Feb. 13 announced a new product called Vaux Smart Autonomy that uses self-driving forklifts, reach trucks and intelligent software to automate and streamline warehouse operations, as part of its Vaux Freight Movement System. ArcBest boasts that its Vaux system and technology can unload and load a trailer in less than five minutes and reduce wait times. It also require less hands-on work from employees.
ARCB Stock
ArcBest ranks third in the Transportation-Truck Group, according to the IBD Stock Checkup. The group is led by Saia.
ArcBest stock rallied 6% Thursday to 146.23 after rebounding off its 21-day exponential moving average Wednesday. Shares hit 148.74 intraday.
ARCB stock is clearing a four-weeks-tight pattern that started after the early-February earnings report. The current pattern has an official buy point of 146.24, according to MarketSurge charts. Shares traded tightly within the pattern for the three weeks ending March 1.
Aggressive investors could use the 145.10 high within the pattern as an early entry opportunity.
ARCB has an 84 Composite Rating out of a best-possible 99. The Composite Rating combines various technical indicators into one easy-to-read score. Shares have a 73 EPS Rating. ArcBest's relative strength line is trending toward 52-week highs, with shares earning a 93 RS Rating.
ARCB stock has rallied 21.2% so far this year.
Meanwhile, the Transportation-Truck industry group is holding up well, trading nearly 11% higher in 2024.
Group leader Saia has leapt almost 37% year-to-date, including a 14.4% spike on Feb. 2 after the company reported a 26% earnings increase. SAIA stock is extended 35% above a buy point after a late-December breakout.
Old Dominion Freight Line is up 9.7% so far this year and in a buy zone for a 22-week base after its Feb. 2 breakout.
JB Hunt Transport has broken down below 10-week support, following an early-February breakout.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
