Arcos Dorados (ARCO) Stock Is the ‘Chart of the Day’

Arcos Dorados (ARCO) stock has ‘staged a comeback’ despite an economic tailspin in South America, TheStreet’s Chris Versace and Bob Lang said.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Arcos Dorados (ARCO) - Get Report  are up 6.36% to $5.52 this morning.

The company announced earlier today that it has repaid in full the outstanding principle in its Brazilian real denominated senior notes due in 2016.

Arcos Dorados is an Argentinian McDonald's (MCD) franchisee.

TheStreet'sChris Versace and Bob Lang of Trifecta Stocks have identified Arcos Dorados as the "Chart of the Day." Here is what Versace and Lang had to say about the stock:

A few years back, Arcos Dorados went public amid some very big fanfare, but proceeded to sink toward zero and just managed to scrape against the bottom earlier this year.

This company is the biggest franchisee of McDonalds in South America, based in Uruguay and operating over 2100 restaurants in 20 countries. The economy down there has been in a tailspin, but this stock has staged a comeback -- likely thanks to the expanded McDonalds' initiatives.

The chart is a thing of beauty too, after having crossed a very tough resistance line in April and now building on an upward bullish channel.

Indicators are strongly bullish too, as the price of the stock approaches a one-year high. Volume levels have increased as the stock bottomed and continues to pace higher than normal.

The moving average convergence divergence (MACD) just went on a buy signal, too.

- Chris Versace and Bob Lang "Chart of the Day: Arcos Dorados" originally published on 7/14/16 on Trifecta Stocks.

Want more like this from Chris Versace and Bob Lang BEFORE your stock moves?Learn more about Trifecta Stocks now here.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

You can view the full analysis from the report here: ARCO

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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