In the latest trading session, ARKO Corp. (ARKO) closed at $6.64, marking a +1.07% move from the previous day. This change lagged the S&P 500's 1.97% gain on the day. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, added 2.18%.
Shares of the company have appreciated by 41.6% over the course of the past month, outperforming the Consumer Staples sector's gain of 12.76%, and the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of ARKO Corp. in its upcoming release. The company is expected to report EPS of -$0.01, up 66.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.81 billion, down 9.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $7.66 billion, which would represent changes of 0% and -12.26%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ARKO Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ARKO Corp. is currently a Zacks Rank #3 (Hold).
Digging into valuation, ARKO Corp. currently has a Forward P/E ratio of 54.75. Its industry sports an average Forward P/E of 19.78, 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 industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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ARKO Corp. (ARKO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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