#8 - Arcos Dorados (NYSE:ARCO)
Arcos Dorados (NYSE: ARCO) - One strategy for investing in low-priced stocks is finding a company like ARCO that is the leading franchisee of McDonald’s in Latin America. If you were to invest in McDonald’s directly, it would cost you right around $180 per share at current prices. You can pick up ARCO stock for less than $9 per share. But is it a good investment? The stock took a beating last year, declining 24% while the S&P 500 lost just 6%. However, in the last quarter, the company showed a rebound with sales increasing by 8% and along with that, the company showed higher margins and a slight uptick in profit. The company’s board of directors also authorized a share buyback plan that is also a sign of improved financial health. This is a stock that may require a certain measure of patience, but investors may be rewarded if the company continues to work through its debt issues and the effect of currency swings.
About Arcos Dorados
Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.
Read More - Current Price
- $8.41
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $13.50 (60.5% Upside)
In almost every sector of the economy, an investor can find low-priced stocks – even some that are trading for under $10 per share. While these companies sometimes have valid reasons for such a low stock price, some companies have traded for far more than their current price and are showing signs of being ready to reward shareholders with growth in revenue and profits. The companies that we're showing in this report represent some areas like telecom that are at the beginning of the 5G rollout. In the past, these cycles have led to multiple quarters of growth. And then there's a company like General Electric, whose stock has been battered and not without reason. But this sleeping giant is showing signs of getting up off the mat – which could mean huge profits for the investor to get in on the stock at its current price. And for those of you that like a little more speculation in your portfolio, consider the Chinese electric car manufacturer, NIO. This is a company that’s been turning the heads of analysts since its initial IPO in September of 2018 and could be ready for a big year in 2019.
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