Analysts covering ArcBest Corporation (NASDAQ:ARCB) are optimistically predicting triple-digit earnings per share to of 113.63% over the following three years. At a current EPS of $0.885, this growth rate means shareholders can expect an impending EPS of $1.89. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. Check out our latest analysis for ArcBest
How is ArcBest going to perform in the future?ArcBest’s growth potential is very attractive. Expectations from 9 analysts are very high, with earnings expected to rise from today’s level of $0.885 to $1.89 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 113.63% over the next few years. In the same period and net income is predicted to shoot from $23M to $49M in the next couple of years, more than doubling from the most recent level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. ARCB’s triple-digit earnings growth the past couple of years indicates that the company’s past performance is supportive of a strong continuation. This means ARCB has already proven its capacity to grow at a strong rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For ARCB, I’ve put together three pertinent factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is ARCB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ARCB is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ARCB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!