ARCO Arcos stock Story

ARCO -  USA Stock  

USD 6.26  0.15  2.34%

Whilst many millenniums are getting more into consumer cyclical space, it makes sense to outline Arcos Dorados Holdings against current trends within the economy. As expected, Arcos Dorados is starting to reaffirm its true potential as institutional investors are becoming more and more confident in the future outlook. The returns on investing in Arcos Dorados and the market returns of the last few months appear not sensitive to each other. The proof of persistent basic indicators of the company suggests a short-term price swing for institutional investors of Arcos. Arcos Dorados Holdings is scheduled to announce its earnings today. The next earnings report is expected on the 17th of March 2021. The stock is in a buyout trend.
Published over six months ago
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Will Arcos Dorados (NYSE:ARCO) price continue to rise in December?
Arcos Dorados Holdings's average rating is Strong Buy from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Arcos Dorados market sentiment investors' perception of the future value of Arcos. Let us look at a few aspects of Arcos technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Arcos Dorados Holdings. In general, we focus on analyzing Arcos Dorados stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Arcos Dorados's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Arcos Dorados's intrinsic value. In addition to deriving basic predictive indicators for Arcos Dorados, we also check how macroeconomic factors affect Arcos Dorados price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Arcos Dorados' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Arcos Dorados in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Arcos Dorados. Your research has to be compared to or analyzed against Arcos Dorados' peers to derive any actionable benefits. When done correctly, Arcos Dorados' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Arcos Dorados Holdings.

How does ARCO Arcos Stands against Peers?

Analyzing Arcos Dorados competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Arcos Dorados across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Arcos Dorados Competition Details

How ARCO Arcos utilizes its cash?

To perform a cash flow analysis of Arcos Dorados, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Arcos Dorados is receiving and how much cash it distributes out in a given period. The Arcos Dorados cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Arcos Dorados Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 16.39 Million

Is Arcos Dorados valued adequately by the market?

The entity has a beta of 0.2079. Let's try to break down what Arcos's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arcos Dorados will likely underperform. The beta indicator helps investors understand whether Arcos Dorados moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Arcos deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported the previous year's revenue of 2.41 B. Net Loss for the year was (84.56 M) with profit before overhead, payroll, taxes, and interest of 363.07 M.

Will Arcos Dorados latest rise continue?

Arcos Dorados latest standard deviation surges over 1.87. Arcos Dorados Holdings exhibits very low volatility with skewness of 0.87 and kurtosis of 2.48. However, we advise investors to further study Arcos Dorados Holdings technical indicators to make sure all market info is available and is reliable.

Our Final Take On Arcos Dorados

Whereas many of the other players within the restaurants industry are still a little expensive, even after the recent corrections, Arcos Dorados may offer a potential longer-term growth to institutional investors. To conclude, as of the 11th of November 2020, our primary 30 days buy-sell recommendation on the company is Strong Hold. We believe Arcos Dorados is undervalued with below average chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Arcos Dorados Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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