ARKO Corp. (ARKO) Falls More Steeply Than Broader Market: What Investors Need to Know

ARKO Corp. (ARKO) ended the recent trading session at $6.14, demonstrating a -2.54% change from the preceding day's closing price. This change lagged the S&P 500's 1.57% loss on the day. Elsewhere, the Dow saw a downswing of 1.34%, while the tech-heavy Nasdaq depreciated by 2.04%.

The company's shares have seen an increase of 25.25% over the last month, surpassing the Consumer Staples sector's gain of 12.37% and the S&P 500's loss of 0.29%.

The investment community will be paying close attention to the earnings performance of ARKO Corp. in its upcoming release. It is anticipated that the company will report an EPS of -$0.01, marking a 66.67% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.81 billion, indicating a 9.03% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $0.13 per share and a revenue of $7.66 billion, demonstrating changes of 0% and -12.26%, respectively, from the preceding year.

Any recent changes to analyst estimates for ARKO Corp. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ARKO Corp. currently has a Zacks Rank of #3 (Hold).

Looking at valuation, ARKO Corp. is presently trading at a Forward P/E ratio of 52.5. This expresses a premium compared to the average Forward P/E of 21.23 of its industry.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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