Is Ambev (ABEV) Outperforming Other Consumer Staples Stocks This Year?

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Ambev (ABEV) 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.

Ambev is one of 187 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. 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 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. Ambev is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ABEV's full-year earnings has moved 1.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ABEV has returned about 16.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Staples group have gained about 11.2% on average. This shows that Ambev is outperforming its peers so far this year.

One other Consumer Staples stock that has outperformed the sector so far this year is Archer Daniels Midland (ADM). The stock is up 36% year-to-date.

In Archer Daniels Midland's case, the consensus EPS estimate for the current year increased 16% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Ambev belongs to the Beverages - Alcohol industry, a group that includes 17 individual companies and currently sits at #153 in the Zacks Industry Rank. Stocks in this group have gained about 17.3% so far this year, so ABEV is slightly underperforming its industry this group in terms of year-to-date returns.

Archer Daniels Midland, however, belongs to the Agriculture - Operations industry. Currently, this 11-stock industry is ranked #217. The industry has moved -8.3% so far this year.

Investors interested in the Consumer Staples sector may want to keep a close eye on Ambev and Archer Daniels Midland as they attempt to continue their solid performance.

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

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