Is L'Oreal (LRLCY) Outperforming Other Consumer Staples Stocks This Year?

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is L'Oreal SA (LRLCY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

L'Oreal SA is one of 179 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. L'Oreal SA is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for LRLCY's full-year earnings has moved 7.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, LRLCY has gained about 7% so far this year. At the same time, Consumer Staples stocks have gained an average of 5.5%. This means that L'Oreal SA is performing better than its sector in terms of year-to-date returns.

Another Consumer Staples stock, which has outperformed the sector so far this year, is United Natural Foods (UNFI). The stock has returned 10.6% year-to-date.

The consensus estimate for United Natural Foods' current year EPS has increased 10.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, L'Oreal SA belongs to the Consumer Products - Staples industry, which includes 35 individual stocks and currently sits at #164 in the Zacks Industry Rank. On average, this group has lost an average of 9.4% so far this year, meaning that LRLCY is performing better in terms of year-to-date returns.

On the other hand, United Natural Foods belongs to the Food - Miscellaneous industry. This 42-stock industry is currently ranked #188. The industry has moved -15.8% year to date.

Investors with an interest in Consumer Staples stocks should continue to track L'Oreal SA and United Natural Foods. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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