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Portillo's Inc. (PTLO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

The latest trading session saw Portillo's Inc. (PTLO) ending at $12.92, denoting a -1.82% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 1.46%. On the other hand, the Dow registered a loss of 1.24%, and the technology-centric Nasdaq decreased by 1.63%.

Heading into today, shares of the company had gained 3.38% over the past month, outpacing the Retail-Wholesale sector's gain of 2.17% and the S&P 500's gain of 1.6% in that time.

The upcoming earnings release of Portillo's Inc. will be of great interest to investors. On that day, Portillo's Inc. is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 20%. In the meantime, our current consensus estimate forecasts the revenue to be $174.68 million, indicating a 11.93% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.41 per share and revenue of $762.68 million, indicating changes of +10.81% and +12.17%, respectively, compared to the previous year.

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Investors should also note any recent changes to analyst estimates for Portillo's Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Portillo's Inc. boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Portillo's Inc. is currently being traded at a Forward P/E ratio of 32.1. Its industry sports an average Forward P/E of 21.23, so one might conclude that Portillo's Inc. is trading at a premium comparatively.

Also, we should mention that PTLO has a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.83 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Portillo's Inc. (PTLO) : Free Stock Analysis Report

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