Arcos Dorados (ARCO) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Arcos Dorados (ARCO) reached $11.56, with a -1.78% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.
Shares of the restaurant owner have depreciated by 3.92% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.07% and the S&P 500's gain of 3.56%.
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. It is anticipated that the company will report an EPS of $0.25, marking a 3.85% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.16 billion, indicating a 14.4% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Arcos Dorados. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.7% lower. Arcos Dorados currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Arcos Dorados is at present trading with a Forward P/E ratio of 12.52. This denotes a discount relative to the industry's average Forward P/E of 19.45.
One should further note that ARCO currently holds a PEG ratio of 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 1.97 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 37% 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.
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
