ArcBest Corporation ARCB

ArcBest is a well‑run LTL and logistics hybrid with real “blocking and tackling” improvements—98% freight dimensioned, AI‑assisted routing/dock tools, and managed transportation at record levels—that should, over time, make the business tougher and more profitable. It’s not a classic compounder yet: operating ratios sit in the low‑9s, asset‑light profits remain thin until the truck market tightens, and free cash flow is choppy in downcycles. But the balance sheet is conservative, the commercial engine is adding sticky accounts, and the valuation leaves room for good things to happen if productivity gains and a modest macro recovery show up in the numbers. For patient investors, this is a credible “prove‑it” story with identifiable levers and a fair shot at compounding if operating discipline keeps closing the gap to best‑in‑class over the next few years.