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ARKO Corp. (ARKO) Gains But Lags Market: What You Should Know

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ARKO Corp. (ARKO - Free Report) closed at $6.56 in the latest trading session, marking a +0.61% move from the prior day. The stock lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.

Shares of the company witnessed a loss of 0.15% over the previous month, beating the performance of the Consumer Staples sector with its loss of 2.9% and underperforming the S&P 500's gain of 1.17%.

The investment community will be paying close attention to the earnings performance of ARKO Corp. in its upcoming release. At the same time, our most recent consensus estimate is projecting a revenue of $2.15 billion, reflecting a 3.64% fall from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for ARKO Corp. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ARKO Corp. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ARKO Corp. is presently being traded at a Forward P/E ratio of 17.16. This expresses a discount compared to the average Forward P/E of 22.34 of its industry.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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