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Arcos Dorados (ARCO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Arcos Dorados (ARCO - Free Report) closed at $7.26, marking a -0.68% move from the previous day. This change lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the restaurant owner had gained 8.46% in the past month. In that same time, the Retail-Wholesale sector gained 7%, while the S&P 500 gained 6.69%.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be August 10, 2022. The company is expected to report EPS of $0.04, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $702.37 million, up 18.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.44 per share and revenue of $3.09 billion. These totals would mark changes of +83.33% and +16.58%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arcos Dorados. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Arcos Dorados is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 16.61. Its industry sports an average Forward P/E of 18.13, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
Investors should also note that ARCO has a PEG ratio of 0.48 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 2.03 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 (ARCO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Arcos Dorados (ARCO - Free Report) closed at $7.26, marking a -0.68% move from the previous day. This change lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the restaurant owner had gained 8.46% in the past month. In that same time, the Retail-Wholesale sector gained 7%, while the S&P 500 gained 6.69%.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be August 10, 2022. The company is expected to report EPS of $0.04, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $702.37 million, up 18.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.44 per share and revenue of $3.09 billion. These totals would mark changes of +83.33% and +16.58%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arcos Dorados. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Arcos Dorados is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 16.61. Its industry sports an average Forward P/E of 18.13, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
Investors should also note that ARCO has a PEG ratio of 0.48 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 2.03 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.