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ARKO Corp. (ARKO) Stock Sinks As Market Gains: Here's Why

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In the latest close session, ARKO Corp. (ARKO - Free Report) was down 1.75% at $4.48. The stock's change was less than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%.

Coming into today, shares of the company had lost 6.17% in the past month. In that same time, the Consumer Staples sector lost 3.99%, while the S&P 500 gained 3.94%.

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 71.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, down 11.05% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.17 per share and a revenue of $7.74 billion, indicating changes of +30.77% and -11.35%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ARKO Corp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 witnessed an unchanged state. ARKO Corp. is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that ARKO Corp. has a Forward P/E ratio of 26.82 right now. This valuation marks a premium compared to its industry average Forward P/E of 21.25.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 29% echelons 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.

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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