ARKO (US:ARKO) zacks.com·2024-05-24 14:02Core Viewpoint - ARKO Corp. has seen a significant stock performance increase of +25.6% over the past month, outperforming the Zacks S&P 500 composite's +4% and the Zacks Consumer Products - Staples industry's +0.8% [1] Earnings Estimates Revisions - For the current quarter, ARKO is expected to post earnings of $0.18 per share, reflecting a +63.6% change from the year-ago quarter, with the Zacks Consensus Estimate changing by +80% over the last 30 days [2] - The consensus earnings estimate for the current fiscal year is $0.54, indicating a year-over-year change of +125%, with a significant change of +494.5% over the last 30 days [3] - For the next fiscal year, the consensus earnings estimate is $0.49, indicating a -8.3% change from the previous year, with a recent change of +600% [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $2.41 billion, indicating a year-over-year change of -2.5%, while estimates for the current and next fiscal years are $9.17 billion and $9.15 billion, reflecting -2.6% and -0.2% changes respectively [5] Last Reported Results - ARKO reported revenues of $2.07 billion in the last quarter, representing a year-over-year change of -0.8%, with an EPS of -$0.02 compared to -$0.03 a year ago [6] - The reported revenues were below the Zacks Consensus Estimate of $2.11 billion, resulting in a surprise of -1.93%, while the EPS surprise was +88.24% [6] Valuation Metrics - ARKO is graded A on the Zacks Value Style Score, indicating it is trading at a discount to its peers [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued, overvalued, or undervalued [7][8] Bottom Line - The Zacks Rank 1 suggests that ARKO may outperform the broader market in the near term, supported by the discussed earnings estimates and valuation metrics [10]