The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Coca-Cola (KO) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.
Coca-Cola is one of 185 companies in the Consumer Staples group. The Consumer Staples group currently sits at #15 within 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 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. Coca-Cola is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for KO's full-year earnings has moved 1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, KO has gained about 18.7% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 9.2% on average. This means that Coca-Cola is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Corteva, Inc. (CTVA). The stock has returned 28.9% year-to-date.
The consensus estimate for Corteva, Inc.'s current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Coca-Cola belongs to the Beverages - Soft drinks industry, which includes 20 individual stocks and currently sits at #110 in the Zacks Industry Rank. This group has gained an average of 14.2% so far this year, so KO is performing better in this area.
On the other hand, Corteva, Inc. belongs to the Agriculture - Operations industry. This 11-stock industry is currently ranked #95. The industry has moved +24.8% year to date.
Coca-Cola and Corteva, Inc. could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
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CocaCola Company (The) (KO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).