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Arcos Dorados (ARCO) Gains As Market Dips: What You Should Know
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In the latest trading session, Arcos Dorados (ARCO - Free Report) closed at $7.46, marking a +0.27% move from the previous day. This change outpaced the S&P 500's 0.41% loss on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Heading into today, shares of the restaurant owner had lost 7.35% over the past month, lagging the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release. In that report, analysts expect Arcos Dorados to post earnings of $0.13 per share. This would mark year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $865.45 million, up 9.93% from the year-ago period.
ARCO's full-year Zacks Consensus Estimates are calling for earnings of $0.66 per share and revenue of $3.91 billion. These results would represent year-over-year changes of -4.35% and +8.7%, respectively.
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. 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.
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 has moved 7.38% higher within the past month. Arcos Dorados currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arcos Dorados currently has a Forward P/E ratio of 11.36. Its industry sports an average Forward P/E of 24.51, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
We can also see that ARCO currently has a PEG ratio of 1.46. 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. ARCO's industry had an average PEG ratio of 2 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arcos Dorados (ARCO) Gains As Market Dips: What You Should Know
In the latest trading session, Arcos Dorados (ARCO - Free Report) closed at $7.46, marking a +0.27% move from the previous day. This change outpaced the S&P 500's 0.41% loss on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Heading into today, shares of the restaurant owner had lost 7.35% over the past month, lagging the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release. In that report, analysts expect Arcos Dorados to post earnings of $0.13 per share. This would mark year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $865.45 million, up 9.93% from the year-ago period.
ARCO's full-year Zacks Consensus Estimates are calling for earnings of $0.66 per share and revenue of $3.91 billion. These results would represent year-over-year changes of -4.35% and +8.7%, respectively.
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. 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.
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 has moved 7.38% higher within the past month. Arcos Dorados currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arcos Dorados currently has a Forward P/E ratio of 11.36. Its industry sports an average Forward P/E of 24.51, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
We can also see that ARCO currently has a PEG ratio of 1.46. 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. ARCO's industry had an average PEG ratio of 2 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.