For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Vita Coco Company, Inc. (COCO) been one of those stocks this year? 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 171 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #12 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 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. Vita Coco Company, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, 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 latest available data, COCO has gained about 49.5% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 7.9% on a year-to-date basis. This means that Vita Coco Company, Inc. is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Ryohin Keikaku Co. Ltd. (RYKKY). The stock has returned 16.7% year-to-date.
Over the past three months, Ryohin Keikaku Co. Ltd.'s consensus EPS estimate for the current year has increased 8.7%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Vita Coco Company, Inc. belongs to the Beverages - Soft drinks industry, which includes 18 individual stocks and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have gained about 11.5% so far this year, so COCO is performing better this group in terms of year-to-date returns.
Ryohin Keikaku Co. Ltd., however, belongs to the Consumer Products - Staples industry. Currently, this 34-stock industry is ranked #180. The industry has moved -2% so far this year.
Vita Coco Company, Inc. and Ryohin Keikaku Co. Ltd. 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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This article originally published on Zacks Investment Research (zacks.com).