Arcos Dorados (ARCO) Advances While Market Declines: Some Information for Investors
Arcos Dorados (ARCO) ended the recent trading session at $11.62, demonstrating a +0.87% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Prior to today's trading, shares of the restaurant owner had lost 10.7% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.92% and the S&P 500's gain of 4.74% in that time.
Investors will be eagerly watching for the performance of Arcos Dorados in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 13, 2024. The company's upcoming EPS is projected at $0.25, signifying a 3.85% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.16 billion, indicating a 14.4% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arcos Dorados. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% lower. Arcos Dorados currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Arcos Dorados is at present trading with a Forward P/E ratio of 12.26. This indicates a discount in contrast to its industry's Forward P/E of 21.02.
Also, we should mention that ARCO has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.05.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
