Arcos Dorados (ARCO) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Arcos Dorados (ARCO) closed at $9.25, marking a +1.43% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 1.16%.
The the stock of restaurant owner has fallen by 3.59% in the past month, lagging the Retail-Wholesale sector's loss of 1.94% and the S&P 500's loss of 3.58%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $1.07 billion, indicating a 16.91% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.78 per share and a revenue of $4.29 billion, indicating changes of +13.04% and +19.22%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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 remained stagnant. At present, Arcos Dorados boasts a Zacks Rank of #2 (Buy).
Digging into valuation, Arcos Dorados currently has a Forward P/E ratio of 11.69. This denotes a discount relative to the industry's average Forward P/E of 19.39.
It is also worth noting that ARCO currently has a PEG ratio of 1.03. 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. The average PEG ratio for the Retail - Restaurants industry stood at 1.65 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
