The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Vita Coco Company, Inc. (COCO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Vita Coco Company, Inc. is one of 173 companies in the Consumer Staples group. The Consumer Staples group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Vita Coco Company, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for COCO's full-year earnings has moved 11.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, COCO has returned 41.8% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 4.4% on average. This means that Vita Coco Company, Inc. is outperforming the sector as a whole this year.
Another stock in the Consumer Staples sector, Ryohin Keikaku Co. Ltd. (RYKKY), has outperformed the sector so far this year. The stock's year-to-date return is 37.1%.
The consensus estimate for Ryohin Keikaku Co. Ltd.'s current year EPS has increased 8.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Vita Coco Company, Inc. is a member of the Beverages - Soft drinks industry, which includes 18 individual companies and currently sits at #81 in the Zacks Industry Rank. This group has gained an average of 10% so far this year, so COCO is performing better in this area.
On the other hand, Ryohin Keikaku Co. Ltd. belongs to the Consumer Products - Staples industry. This 35-stock industry is currently ranked #157. The industry has moved -4.5% year to date.
Investors interested in the Consumer Staples sector may want to keep a close eye on Vita Coco Company, Inc. and Ryohin Keikaku Co. Ltd. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).