Stock Price & Analysis

Based on the provided data and recent market activity, ARMK stock is showing weakness with a -1.39% decline to $37.56 in the latest trading session, and technical indicators suggest caution at current levels given the downward price momentum.

Recent Developments:

• Q1 earnings beat expectations with adjusted EPS of $0.51 vs $0.48 consensus
• Revenue of $4.55B missed analyst estimates of $4.62B
• Operating income grew 30% YoY to $217M
• Management expects revenue growth to accelerate in H2 2025

Analyst Sentiment: Recent analyst actions have been mixed but generally positive:

• RBC Capital reiterated Buy rating with $47 PT (23.9% upside)
• Morgan Stanley maintained Equal Weight with $43 PT
• Baird kept Neutral rating with $45 PT

Technical Analysis: The stock is showing bearish signals with:

• Trading below its 20-day moving average of $38.60
• Recent high volume selling pressure
• RSI at 41.84 indicates neutral but weakening momentum

Given the mixed fundamental picture but deteriorating technical signals, selling ARMK at current levels appears prudent. The stock may find support around $36.55 (Fibonacci S1 level), which could present a better entry point for long positions.

Based on the provided data and context, here is the price prediction for ARMK stock in 2025:

ARMK's stock price is expected to reach $44-47 by end of 2025, representing approximately 18-26% upside from current price of $37.15. This projection is supported by three key factors:

Key Growth Drivers:

1. Strong business fundamentals with Q1 2025 earnings beat (51 cents vs 48 cents expected) and management's guidance for FY25 organic revenue growth of 7.5-9.5%

2. Significant new business pipeline and successful client retention as highlighted by CEO John Zillmer, indicating sustainable growth momentum

3. Wall Street analysts maintain positive outlook with average price target of $44.38 and high estimate of $47.00, with no bearish ratings among 8 analysts covering the stock

Risk Factors:

The stock faces near-term headwinds from recent quarterly revenue miss ($4.55B vs $4.62B expected) and broader market uncertainties around trade tensions. However, management expects revenue growth to accelerate in second half of 2025 with double-digit growth.

The S1 support level for ARMK Stock is $36.55 ,The R1 resistant level for ARMK Stock is $39.62.

As of the end of day on 2025-02-10, the price of ARMK Stock was $37.157.

The target price for ARMK Stock according to analyst rating is 45.44, with the highest price target at 49.00 and the lowest at 43.00. Analysts have a Strong Buy rating on ARMK Stock overall.

The market cap of ARMK is $10.0B.

Based on the provided data and recent market activity, here's a concise analysis of ARMK's valuation:

Valuation Analysis: ARMK appears fairly valued at current levels based on several key metrics. The company's PE ratio has increased from 12.16 in Q2 2024 to 29.44 in Q1 2025, suggesting some valuation expansion. Similarly, EV/EBITDA has risen from 9.54 to 12.44 during the same period, indicating the stock is trading at the higher end of its historical valuation range.

Recent Performance: The stock closed at $37.56 on February 10, 2025, down 1.39% in regular trading. The company recently reported Q1 earnings that beat expectations with adjusted EPS of $0.51 versus estimates of $0.48, though revenue of $4.55 billion slightly missed consensus.

Analyst Sentiment: Recent analyst actions have been predominantly positive, with RBC Capital reiterating a Buy rating with a $47 price target on February 6, 2025, implying 23.91% upside. Multiple analysts have raised their price targets, with the consensus ranging from $40 to $47.

Growth Outlook: Management has provided strong FY25 guidance with organic revenue growth of 7.5-9.5% and adjusted EPS growth of 23-28%, suggesting confidence in the company's operational execution and market positioning.

Final Assessment: While ARMK's current valuation multiples are elevated compared to recent quarters, the strong earnings beat, positive analyst sentiment, and robust growth guidance suggest the premium is justified. The stock is not significantly overvalued given its growth trajectory and improving operational performance.

Aramark is a global provider of food and facilities services to education, healthcare, business and industry and sports, leisure, and corrections clients. The Company operates through two segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International). The FSS United States segment consists of five sectors, which include business and industry, education, healthcare, sports, leisure and corrections and facilities and others. The Company provides food and beverage services, including catering and retail services, and facilities services, including plant operations and maintenance, custodial, housekeeping, landscaping and other services. The Company's core market is the United States, which is supplemented by an additional 18-country footprint.

Based on the available data and analyst insights, here is a comprehensive price prediction for ARMK stock by 2030:

ARMK stock is projected to reach $65-70 by 2030, representing a ~75-85% upside from current levels, driven by the company's strong business pipeline and operational efficiency improvements. The company's recent earnings beat, robust cash flow generation, and management's confidence in accelerating revenue growth support this bullish outlook.

The company's strategic focus on new business wins and client retention, combined with its projected FY25 organic revenue growth of 7.5-9.5% and adjusted EPS growth of 23-28%, establishes a solid foundation for long-term value creation.

ARMK has a total of 262550 employees.