ArcBest Corporation’s share price was $87.51 on January 13th, with trailing and forward P/E ratios of 20.79 and 17.76 respectively. The company operates 239 service centers in North America, with 56% of its employees represented by the Teamsters. ArcBest’s 2024 revenue of $4.53 billion is split between its LTL and logistics segments.

The North American LTL market is valued at $85 billion, with the top 10 carriers controlling 75% of revenue. Yellow’s 2023 liquidation has benefited ArcBest by redistributing assets to rational operators and improving rate discipline. Despite a freight recession, industry pricing has remained rational, providing potential for earnings growth.

Trading near its liquidation value, ArcBest offers asymmetric upside with potential EPS of $10-12 in a mid-cycle recovery and $18-20 with normalization in shipment weights. Catalysts include industrial recovery, tonnage normalization, terminal monetization, and potential M&A. The company presents a compelling risk/reward opportunity for investors at the bottom of the cycle.

Compared to a bullish thesis on Old Dominion Freight Line, ArcBest offers unique advantages with its unionized structure, higher leverage, and potential upside from freight recovery and asset monetization. Despite a 12.49% decrease in stock price since coverage, the operational moat for both companies remains strong. ArcBest’s position in the LTL market presents a promising opportunity for investors seeking growth potential.

Read more at Yahoo Finance: ArcBest Corporation (ARCB): A Bull Case Theory