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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 at $9.34 in the latest trading session, marking a +1.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Coming into today, shares of the restaurant owner had gained 1.32% in the past month. In that same time, the Retail-Wholesale sector gained 4.92%, while the S&P 500 gained 6.22%.
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 $0.14 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $976.97 million, up 10.53% from the year-ago period.
ARCO's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +4.35% and +13.36%, respectively.
It is also important to note the recent changes to analyst estimates for Arcos Dorados. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 4.35% higher. Arcos Dorados currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Arcos Dorados currently has a Forward P/E ratio of 12.81. This represents a discount compared to its industry's average Forward P/E of 23.08.
We can also see that ARCO currently has a PEG ratio of 1.35. 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 1.92 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many 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 at $9.34 in the latest trading session, marking a +1.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Coming into today, shares of the restaurant owner had gained 1.32% in the past month. In that same time, the Retail-Wholesale sector gained 4.92%, while the S&P 500 gained 6.22%.
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 $0.14 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $976.97 million, up 10.53% from the year-ago period.
ARCO's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +4.35% and +13.36%, respectively.
It is also important to note the recent changes to analyst estimates for Arcos Dorados. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 4.35% higher. Arcos Dorados currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Arcos Dorados currently has a Forward P/E ratio of 12.81. This represents a discount compared to its industry's average Forward P/E of 23.08.
We can also see that ARCO currently has a PEG ratio of 1.35. 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 1.92 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.