Arcos Dorados (ARCO) Stock Sinks As Market Gains: Here’s Why

From Nasdaq:

Arcos Dorados (ARCO) closes at $12.85, a -0.93% drop. The S&P 500 gains 1.07% and the Dow gains 0.35%, while the Nasdaq increases 1.74%. The restaurant company’s stock has gained 8.9% in the past month and is set to release its earnings with an expected EPS of $0.25 and revenue of $1.16 billion.

Our research shows that stock price performances are directly linked with analyst estimate adjustments. It is important to monitor these and we have developed the Zacks Rank, which gives Arcos Dorados a #3 (Hold) ranking. The company is also trading at a Forward P/E ratio of 13.7, representing a discount relative to the industry’s average.

Arcos Dorados’ PEG ratio is 1.08, lower than the industry’s average of 1.86. The company is in the Retail – Restaurants industry, which has a Zacks Industry Rank of 157, placing it within the bottom 38% of industries. Top performing industries usually outperform lower-ranked industries by a factor of 2 to 1.

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