Arcos Dorados (ARCO) closed the most recent trading day at $7.42, moving -0.27% from the previous trading session. This change was narrower than the S&P 500's 0.72% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Heading into today, shares of the restaurant owner had gained 1.36% over the past month, outpacing the Retail-Wholesale sector's loss of 7.39% and the S&P 500's loss of 9.06% in that time.
Arcos Dorados will be looking to display strength as it nears its next earnings release. On that day, Arcos Dorados is projected to report earnings of $0.12 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $823.46 million, up 13.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.49 per share and revenue of $3.37 billion. These totals would mark changes of +104.17% and +27.08%, respectively, from last year.
Any recent changes to analyst estimates for Arcos Dorados should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 15.18. Its industry sports an average Forward P/E of 19.53, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
Meanwhile, ARCO's PEG ratio is currently 0.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARCO's industry had an average PEG ratio of 2.13 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
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