ODFL - ArcBest's Valuation Suggests A Much Bleaker Freight Market Than The Companies Are Seeing

• ArcBest beat second quarter expectations with strong growth in both the asset-based trucking operations and the asset-light logistics operations.
• Excluding some tech-related spending, ArcBest's trucking business cracked the 90% line for operating ratio, with an 89% operating ratio standing as the best in at least 15 years.
• Management is bullish on the opportunities to grow its asset-light logistics business with existing customers, and freight demand doesn't seem to be letting up yet.
• ArcBest trades like it's on the edge of a significant cyclical slowdown, but 4% to 5% long-term revenue growth and below-historical average forward multiples argue for undervaluation.

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