Arcos Dorados (ARCO) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, Arcos Dorados (ARCO) reached $9.34, with a +1.19% movement compared to the previous day. This change outpaced the S&P 500's 0.17% loss on the day. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Coming into today, shares of the restaurant owner had lost 3.25% in the past month. In that same time, the Retail-Wholesale sector lost 5.71%, while the S&P 500 lost 3.95%.
The investment community will be paying close attention to the earnings performance of Arcos Dorados in its upcoming release. The company is slated to reveal its earnings on November 16, 2023. The company's upcoming EPS is projected at $0.20, signifying a 13.04% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.07 billion, showing a 16.91% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.78 per share and a revenue of $4.29 billion, signifying shifts of +13.04% and +19.22%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Arcos Dorados. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arcos Dorados presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Arcos Dorados has a Forward P/E ratio of 11.83 right now. This signifies a discount in comparison to the average Forward P/E of 19.5 for its industry.
Also, we should mention that ARCO has a PEG ratio of 1.04. 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 1.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
