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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 $10.55, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.71%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Prior to today's trading, shares of the restaurant owner had gained 14.63% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.63% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be August 17, 2023. The company is expected to report EPS of $0.14, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $976.97 million, up 10.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $4.08 billion, which would represent changes of +4.35% and +13.36%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arcos Dorados is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arcos Dorados has a Forward P/E ratio of 14.47 right now. Its industry sports an average Forward P/E of 24.52, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
Also, we should mention that ARCO has a PEG ratio of 1.52. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.99 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 30, which puts it in the top 12% 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) Outpaces Stock Market Gains: What You Should Know
Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $10.55, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.71%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Prior to today's trading, shares of the restaurant owner had gained 14.63% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.63% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Arcos Dorados as it approaches its next earnings release, which is expected to be August 17, 2023. The company is expected to report EPS of $0.14, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $976.97 million, up 10.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $4.08 billion, which would represent changes of +4.35% and +13.36%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arcos Dorados is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arcos Dorados has a Forward P/E ratio of 14.47 right now. Its industry sports an average Forward P/E of 24.52, so we one might conclude that Arcos Dorados is trading at a discount comparatively.
Also, we should mention that ARCO has a PEG ratio of 1.52. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.99 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 30, which puts it in the top 12% 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.