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ARKO Corp. (ARKO) Declines More Than Market: Some Information for Investors

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In the latest close session, ARKO Corp. (ARKO - Free Report) was down 2.55% at $4.20. The stock's change was less than the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.13%.

The company's shares have seen a decrease of 13.97% over the last month, not keeping up with the Consumer Staples sector's loss of 0.73% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of ARKO Corp. in its upcoming earnings disclosure. The company is expected to report EPS of $0.12, up 9.09% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.08 billion, indicating a 12.82% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.08 per share and a revenue of $7.97 billion, indicating changes of -38.46% and -8.74%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for ARKO Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, ARKO Corp. is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, ARKO Corp. is at present trading with a Forward P/E ratio of 53.88. Its industry sports an average Forward P/E of 18.98, so one might conclude that ARKO Corp. is trading at a premium comparatively.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ARKO in the coming trading sessions, be sure to utilize Zacks.com.


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