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Arcos Dorados (ARCO) Gains But Lags Market: What You Should Know
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Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $7.46, moving +1.08% from the previous trading session. This move lagged the S&P 500's daily gain of 2.99%. Meanwhile, the Dow gained 2.81%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the restaurant owner had lost 5.63% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 10.62% and the S&P 500's loss of 8.06% in that time.
Wall Street will be looking for positivity from Arcos Dorados as it approaches its next earnings report date. This is expected to be May 18, 2022. The company is expected to report EPS of $0.05, up 135.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $731.07 million, up 30.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.40 per share and revenue of $3.09 billion. These totals would mark changes of +66.67% and +16.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Arcos Dorados. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.59% higher. Arcos Dorados is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Arcos Dorados is currently trading at a Forward P/E ratio of 18.6. For comparison, its industry has an average Forward P/E of 21.25, which means Arcos Dorados is trading at a discount to the group.
We can also see that ARCO currently has a PEG ratio of 0.59. 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. The Retail - Restaurants was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 (ARCO) Gains But Lags Market: What You Should Know
Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $7.46, moving +1.08% from the previous trading session. This move lagged the S&P 500's daily gain of 2.99%. Meanwhile, the Dow gained 2.81%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the restaurant owner had lost 5.63% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 10.62% and the S&P 500's loss of 8.06% in that time.
Wall Street will be looking for positivity from Arcos Dorados as it approaches its next earnings report date. This is expected to be May 18, 2022. The company is expected to report EPS of $0.05, up 135.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $731.07 million, up 30.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.40 per share and revenue of $3.09 billion. These totals would mark changes of +66.67% and +16.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Arcos Dorados. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.59% higher. Arcos Dorados is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Arcos Dorados is currently trading at a Forward P/E ratio of 18.6. For comparison, its industry has an average Forward P/E of 21.25, which means Arcos Dorados is trading at a discount to the group.
We can also see that ARCO currently has a PEG ratio of 0.59. 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. The Retail - Restaurants was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.