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ARKO Corp. (ARKO) Laps the Stock Market: Here's Why

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In the latest trading session, ARKO Corp. (ARKO - Free Report) closed at $4.65, marking a +2.42% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%.

The stock of company has fallen by 2.37% in the past month, lagging the Consumer Staples sector's loss of 0.78% and the S&P 500's gain of 3.85%.

The upcoming earnings release of ARKO Corp. will be of great interest to investors. In that report, analysts expect ARKO Corp. to post earnings of $0.12 per share. This would mark year-over-year growth of 9.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.07 billion, down 13.12% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.08 per share and revenue of $7.87 billion, indicating changes of -38.46% and -9.84%, respectively, compared to the previous year.

Any recent changes to analyst estimates for ARKO Corp. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ARKO Corp. is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, ARKO Corp. is at present trading with a Forward P/E ratio of 56.75. This expresses a premium compared to the average Forward P/E of 18.56 of its industry.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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