Arcos Dorados (ARCO) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Arcos Dorados (ARCO) closed at $12.90, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Coming into today, shares of the restaurant owner had gained 2.27% in the past month. In that same time, the Retail-Wholesale sector gained 1.02%, while the S&P 500 gained 3.05%.
Market participants will be closely following the financial results of Arcos Dorados in its upcoming release. The company is expected to report EPS of $0.25, down 3.85% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 14.4% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Arcos Dorados. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Arcos Dorados possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 13.83. This denotes a discount relative to the industry's average Forward P/E of 19.79.
It is also worth noting that ARCO currently has a PEG ratio of 1.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
