BofA Upgrades ArcBest (ARCB) Stock, Lifts PT

ArcBest Corporation (NASDAQ:ARCB) is one of the 7 best undervalued stocks to buy now. On June 10, BofA upped ArcBest Corporation (NASDAQ:ARCB)’s stock to “Neutral” from “Underperform,” increasing the price objective to $74 from the previous target of $63, as reported by The Fly. The adjustment comes after a discussion with the company’s CFO, Matt Beasley. The conversation shed light on the company’s ongoing progress and its capability to offset pressure on core yields while, at the same time, continuing to gain momentum with the core customers.

The firm’s analysts highlighted the strides ArcBest Corporation (NASDAQ:ARCB) has been making in its core Less-Than-Truckload (LTL) operations. The company stated that, in Q1 2025, continued productivity gains were aided by technology, training, and network design. In the Asset-Based segment, productivity improvements of 1.1% and other cost initiatives supported in mitigating the impact of the soft market environment, increased insurance and healthcare costs, as well as annual labor cost increases related to ABF’s union contract.

The Asset-Light segment was supported by improvement in margins, reduced operating costs, and productivity improvements, with shipments per employee per day improving 23.6% YoY in Q1 2025.

While we acknowledge the potential of ARCB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ARCB and that has 100x upside potential, check out our report about this cheapest AI stock.

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