IBD Stock Analysis
- Working on consolidation with 116.89 buy point
- Rebounding from 50-day/10-week line
- Clearing the Dec. 16 high of 111.60 would offer an early entry.
Industry Group Ranking
* Not real-time data. All data shown was captured at 1:28PM EST on 12/22/2021.
ArcBest is a trucking, freight and transportation company that operates throughout North America. ARCB stock is ranked No. 1 in IBD’s highly rated Transportation-Truck group, which also includes Saia (SAIA) and J.B. Hunt Transport (JBHT).
The supply chain has been a major concern heading into the holiday season. As congestion eases at American ports, the trucking bottleneck is coming into focus. The pandemic exacerbated a truck driver shortage that has been growing for several years, according to the American Trucking Associations.
The Biden Administration recently announced that it would work with the trucking industry to help alleviate the shortage and improve working conditions for truckers.
With a trucker shortage and rising gasoline prices, shippers are more willing than ever to pay higher rates to move their products, good news for trucking companies like ArcBest.
The stock also has a best-possible 99 Composite Rating and an EPS Rating of 98. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
ArcBest’s Accumulation/Distribution Rating, which reflects institutional buying and selling of a stock, is a C-, according to the IBD Stock Checkup tool. That means there is slightly more selling than buying.
Shares rose 1.3% to 107.97 on the stock market today. ARCB stock has rebounded from its 50-day line. Investors could use last week’s high of 111.60 as a potential entry from both the 50-day line and a downward-sloping trend line.
But investors need to be cautious during a turbulent market as the market rallies and then falls amid growing Covid-19 infections.
More cautious investors can look at buying ARCB stock at its official buy point of 116.89, according to MarketSmith analysis. The stock is consolidating after gapping above a cup-with-handle base following quarterly earnings.
ArcBest’s relative strength line is just below recent highs. The RS line compares a stock’s performance with that of the S&P 500. When the RS line is climbing, this means it is outperforming the benchmark index.
But again, the market is choppy and stocks with rising RS lines could fall amid even a small market sell-off. ARCB stock will continue doing well as long as the market holds up. But it could quickly slide backward if the market falls.
ArcBest’s peer Old Dominion Freight Line (ODFL) triggered a sell signal after falling below its 50-day line earlier this week after reaching record highs. ODFL stock is on the rise again, up 1.35% to 344.03 on Wednesday, reclaiming that key support level.
Saia stock dipped 0.4%, hitting resistance at the 50-day line. JBHT stock edged down 0.1%, but holding its 50-day.
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