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Bear of the Day: Aramark (ARMK)

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It’s becoming increasingly difficult to find stocks to pick on these days. The obvious ones have already been decimated. In this new post-COVID, and post-Trump world, what will be the next driving force of the market? Who will be left on the sidelines?

Well, the purpose of the Bear of the Day is not to make fun of an individual company. Rather, it is to call attention to what’s happening in earnings estimates on Wall Street. Really, these are meant to inform, rather than tear down.

Take a look at what’s happening over at today’s Bear of the Day, Aramark (ARMK - Free Report) .Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. 

Earnings have done a nose-dive for the current year, that’s what is making this stock a Zacks Rank #5 (Strong Sell). Our Zacks Consensus Estimate has plummeted from 45 cents just ninety days ago to a 24-cent-loss today. Next year’s numbers have tumbled as well, off from $2.07 down to $1.80. That’s the bad news, but there is a silver lining to this cloud. Looking forward to next year, FY22, there is a forecast for serious reinflation of growth. While the current year contraction is forecast to come in at -41%, next year’s growth is slated for an eye-watering 847% earnings growth. That could lead some long-term investors to start to peck at this holding.

The Food – Miscellaneous industry currently ranks in the Bottom 24% of our Zacks Industry Rank. Investors looking for other names which are in the good graces of our Zacks Rank have a few names to inspect further. B&G Foods (BGS - Free Report) is the only name in the industry which is currently a Zacks Rank #1 (Strong Buy). A handful of stocks are Zacks Rank #2 (Buy) stocks including Nomad Foods (NOMD - Free Report) .

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B&G Foods, Inc. (BGS) - free report >>

Aramark (ARMK) - free report >>

Nomad Foods Limited (NOMD) - free report >>

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