The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arcos Dorados (ARCO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Arcos Dorados is a member of the Retail-Wholesale sector. This group includes 189 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ARCO's full-year earnings has moved 6.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ARCO has moved about 13.1% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of -2.3% on a year-to-date basis. This means that Arcos Dorados is outperforming the sector as a whole this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Five Below (FIVE). The stock has returned 2.7% year-to-date.
The consensus estimate for Five Below's current year EPS has increased 10% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, which includes 37 individual stocks and currently sits at #199 in the Zacks Industry Rank. On average, stocks in this group have lost 1.8% this year, meaning that ARCO is performing better in terms of year-to-date returns.
On the other hand, Five Below belongs to the Retail - Miscellaneous industry. This 14-stock industry is currently ranked #95. The industry has moved -16.2% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Arcos Dorados and Five Below as they attempt to continue their solid performance.
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Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).