Is ArcBest Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ArcBest Corp. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, especially when considering its P/E ratio of 16, which is significantly lower than the peer average of 24.1 for companies like J.B. Hunt Transport Services, Inc. Additionally, ArcBest's EV to EBITDA ratio stands at 6.51, compared to the industry average of 7.88, further supporting the undervaluation thesis. The dividend yield of 51.03% also highlights the potential for returns to investors.
In terms of peer comparison, J.B. Hunt Transport Services, Inc. has a P/E ratio of 40.85, while Saia, Inc. shows a P/E of 28.76, both indicating that ArcBest is trading at a more attractive valuation relative to its competitors. Despite recent struggles, with a year-to-date return of -21.32% compared to the S&P 500's 13.30%, the long-term outlook remains positive, as evidenced by a 5-year return of 119.23%, outperforming the S&P 500's 91.29% over the same period.