Arcos Dorados (ARCO) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest market close, Arcos Dorados (ARCO) reached $9.96, with a +0.1% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.3%.
The the stock of restaurant owner has risen by 11.55% in the past month, leading the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 3.08%.
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 is forecasted to report an EPS of $0.20, showcasing a 13.04% downward movement from the corresponding quarter of the prior 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arcos Dorados. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Arcos Dorados is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Arcos Dorados is currently being traded at a Forward P/E ratio of 12.76. This expresses a discount compared to the average Forward P/E of 19.56 of its industry.
Investors should also note that ARCO has a PEG ratio of 1.12 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.66.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
