ARKO Corp. (ARKO) closed at $4.11 in the latest trading session, marking a -3.52% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the company had lost 6.58% in the past month. In that same time, the Consumer Staples sector lost 3.69%, while the S&P 500 lost 0.24%.
The upcoming earnings release of ARKO Corp. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 20% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.02 billion, showing a 0.07% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.11 per share and revenue of $7.99 billion, indicating changes of -26.67% and +4.57%, respectively, compared to the previous year.
It is also important to note the recent changes 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, ARKO Corp. is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that ARKO Corp. has a Forward P/E ratio of 38.73 right now. For comparison, its industry has an average Forward P/E of 19.42, which means ARKO Corp. is trading at a premium to the group.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).