Arcos Dorados Holdings Inc (NYSE: ARCO) has seen a rise in its stock price by 4.36 in relation to its previous close of 10.10. However, the company has experienced a 7.11% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2023-11-13 that Arcos Dorados (ARCO) third-quarter 2023 results are likely to gain from robust systemwide comparable sales.
Is It Worth Investing in Arcos Dorados Holdings Inc (NYSE: ARCO) Right Now?
Arcos Dorados Holdings Inc (NYSE: ARCO) has a higher price-to-earnings ratio of 13.28x compared to its average ratio, and the 36-month beta value for ARCO is at 1.18. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 as “hold,” and 0 as “sell.”
The average price suggested by analysts for ARCO is $12.54, which is $2.0 above the current market price. The public float for ARCO is 123.78M, and currently, shorts hold a 2.95% of that float. The average trading volume for ARCO on November 16, 2023 was 861.26K shares.
ARCO’s Market Performance
ARCO’s stock has seen a 7.11% increase for the week, with a 6.57% rise in the past month and a 6.68% gain in the past quarter. The volatility ratio for the week is 2.86%, and the volatility levels for the past 30 days are at 3.04% for Arcos Dorados Holdings Inc The simple moving average for the last 20 days is 10.38% for ARCO stock, with a simple moving average of 15.12% for the last 200 days.
Analysts’ Opinion of ARCO
Many brokerage firms have already submitted their reports for ARCO stocks, with Barclays repeating the rating for ARCO by listing it as a “Overweight.” The predicted price for ARCO in the upcoming period, according to Barclays is $9 based on the research report published on September 27, 2022 of the previous year 2022.
ARCO Trading at 10.15% from the 50-Day Moving Average
After a stumble in the market that brought ARCO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.11% of loss for the given period.
Volatility was left at 3.04%, however, over the last 30 days, the volatility rate increased by 2.86%, as shares surge +9.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.00% upper at present.
During the last 5 trading sessions, ARCO rose by +7.11%, which changed the moving average for the period of 200-days by +24.00% in comparison to the 20-day moving average, which settled at $9.59. In addition, Arcos Dorados Holdings Inc saw 26.08% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for ARCO
Current profitability levels for the company are sitting at:
- +7.30 for the present operating margin
- +13.60 for the gross margin
The net margin for Arcos Dorados Holdings Inc stands at +3.88. The total capital return value is set at 14.53, while invested capital returns managed to touch 8.14. Equity return is now at value 54.14, with 6.42 for asset returns.
Based on Arcos Dorados Holdings Inc (ARCO), the company’s capital structure generated 482.54 points at debt to equity in total, while total debt to capital is 82.83. Total debt to assets is 59.23, with long-term debt to equity ratio resting at 450.94. Finally, the long-term debt to capital ratio is 77.41.
When we switch over and look at the enterprise to sales, we see a ratio of 0.85, with the company’s debt to enterprise value settled at 0.52. The receivables turnover for the company is 28.35 and the total asset turnover is 1.45. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.90.
In conclusion, Arcos Dorados Holdings Inc (ARCO) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.