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Arcos Dorados (ARCO) Stock Sinks As Market Gains: Here's Why
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Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $12.85, moving -0.93% from the previous trading session. This move lagged the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq increased by 1.74%.
Coming into today, shares of the restaurant owner had gained 8.9% in the past month. In that same time, the Retail-Wholesale sector gained 2.02%, while the S&P 500 gained 2.93%.
The upcoming earnings release of Arcos Dorados will be of great interest to investors. The company is expected to report EPS of $0.25, down 3.85% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 14.4% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Arcos Dorados. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Arcos Dorados currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Arcos Dorados is at present trading with a Forward P/E ratio of 13.7. This denotes a discount relative to the industry's average Forward P/E of 21.23.
Investors should also note that ARCO has a PEG ratio of 1.08 right now. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.86.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 157, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Arcos Dorados (ARCO) Stock Sinks As Market Gains: Here's Why
Arcos Dorados (ARCO - Free Report) closed the most recent trading day at $12.85, moving -0.93% from the previous trading session. This move lagged the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq increased by 1.74%.
Coming into today, shares of the restaurant owner had gained 8.9% in the past month. In that same time, the Retail-Wholesale sector gained 2.02%, while the S&P 500 gained 2.93%.
The upcoming earnings release of Arcos Dorados will be of great interest to investors. The company is expected to report EPS of $0.25, down 3.85% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 14.4% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Arcos Dorados. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Arcos Dorados currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Arcos Dorados is at present trading with a Forward P/E ratio of 13.7. This denotes a discount relative to the industry's average Forward P/E of 21.23.
Investors should also note that ARCO has a PEG ratio of 1.08 right now. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.86.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 157, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.