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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 $8.13, moving +0.62% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the restaurant owner had gained 4.8% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.58% and lagged the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be May 17, 2023. The company is expected to report EPS of $0.13, up 8.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $865.45 million, up 9.93% from the prior-year quarter.
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.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Arcos Dorados is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 12.34. Its industry sports an average Forward P/E of 24.24, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
It is also worth noting that ARCO currently has a PEG ratio of 1.59. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
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 $8.13, moving +0.62% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the restaurant owner had gained 4.8% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.58% and lagged the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be May 17, 2023. The company is expected to report EPS of $0.13, up 8.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $865.45 million, up 9.93% from the prior-year quarter.
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.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Arcos Dorados is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Arcos Dorados's current valuation metrics, including its Forward P/E ratio of 12.34. Its industry sports an average Forward P/E of 24.24, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
It is also worth noting that ARCO currently has a PEG ratio of 1.59. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.