Is Arcos Dorados Holdings Inc (ARCO) Holding Up Well Over a Long-Time Horizon?

Arcos Dorados Holdings Inc [ARCO] stock is trading at $8.64, up 1.89%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The ARCO shares have gain 4.35% over the last week, with a monthly amount drifted -5.78%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Arcos Dorados Holdings Inc [NYSE: ARCO] stock has seen the most recent analyst activity on December 01, 2023, when Jefferies initiated its Buy rating and assigned the stock a price target of $15. Previously, Barclays started tracking the stock with Overweight rating on September 27, 2022, and set its price target to $9. On April 04, 2022, downgrade downgraded it’s rating to Hold but maintained its price target of $8 on the stock. BofA Securities upgraded its rating to a Buy and increased its price target to $10 on March 24, 2022. Credit Suisse upgraded its rating to a Outperform but $9.50 remained the price target by the analyst firm on February 23, 2022. Goldman upgraded its rating to Buy for this stock on January 19, 2022, and upped its price target to $7. In a note dated September 20, 2021, BofA Securities downgraded an Neutral rating on this stock.

Arcos Dorados Holdings Inc [ARCO] stock has fluctuated between $8.08 and $13.20 over the past year. Currently, Wall Street analysts expect the stock to reach $12.15 within the next 12 months. Arcos Dorados Holdings Inc [NYSE: ARCO] shares were valued at $8.64 at the most recent close of the market. An investor can expect a potential return of 40.62% based on the average ARCO price forecast.

Analyzing the ARCO fundamentals

Arcos Dorados Holdings Inc [NYSE:ARCO] reported sales of 4.49B for the trailing twelve months, which represents a growth of 6.76%. Gross Profit Margin for this corporation currently stands at 0.15% with Operating Profit Margin at 0.07%, Pretax Profit Margin comes in at 0.05%, and Net Profit Margin reading is 0.04%. To continue investigating profitability, this company’s Return on Assets is posted at 0.06, Equity is 0.36 and Total Capital is 0.15. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of1.81.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 8.55 points at the first support level, and at 8.47 for the second support level. However, for the 1st resistance point, the stock is sitting at 8.72, and for the 2nd resistance point, it is at 8.80.

Ratios To Look Out For

For context, Arcos Dorados Holdings Inc’s Current Ratio is 0.63. As well, the Quick Ratio is 0.57, while the Cash Ratio is 0.13. Considering the valuation of this stock, the price to sales ratio is 0.41, the price to book ratio is 3.88 and price to earnings (TTM) ratio is 10.67.

Transactions by insiders

Recent insider trading involved Annette Franqui, Director, that happened on Aug 30 ’24 when 0.2 million shares were purchased.

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