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Arcos Dorados (ARCO) Outpaces Stock Market Gains: What You Should Know
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Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $7, moving +1.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the restaurant owner had lost 9.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.7% and the S&P 500's loss of 8.32% in that time.
Arcos Dorados will be looking to display strength as it nears its next earnings release. In that report, analysts expect Arcos Dorados to post earnings of $0.04 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $702.37 million, up 18.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.44 per share and revenue of $3.09 billion, which would represent changes of +83.33% and +16.58%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.77% higher within the past month. 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 15.61. This valuation marks a discount compared to its industry's average Forward P/E of 16.88.
Investors should also note that ARCO has a PEG ratio of 0.45 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arcos Dorados (ARCO) Outpaces Stock Market Gains: What You Should Know
Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $7, moving +1.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the restaurant owner had lost 9.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.7% and the S&P 500's loss of 8.32% in that time.
Arcos Dorados will be looking to display strength as it nears its next earnings release. In that report, analysts expect Arcos Dorados to post earnings of $0.04 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $702.37 million, up 18.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.44 per share and revenue of $3.09 billion, which would represent changes of +83.33% and +16.58%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.77% higher within the past month. 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 15.61. This valuation marks a discount compared to its industry's average Forward P/E of 16.88.
Investors should also note that ARCO has a PEG ratio of 0.45 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.