For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Fomento Economico (FMX) 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.
Fomento Economico is one of 171 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #13 in 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. Fomento Economico is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FMX's full-year earnings has moved 13.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, FMX has moved about 17.8% on a year-to-date basis. At the same time, Consumer Staples stocks have gained an average of 5.9%. This means that Fomento Economico is outperforming the sector as a whole this year.
One other Consumer Staples stock that has outperformed the sector so far this year is Helen of Troy (HELE). The stock is up 27.7% year-to-date.
The consensus estimate for Helen of Troy's current year EPS has increased 4.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Fomento Economico is a member of the Beverages - Soft drinks industry, which includes 18 individual companies and currently sits at #154 in the Zacks Industry Rank. On average, stocks in this group have gained 10% this year, meaning that FMX is performing better in terms of year-to-date returns.
In contrast, Helen of Troy falls under the Cosmetics industry. Currently, this industry has 8 stocks and is ranked #46. Since the beginning of the year, the industry has moved -16.8%.
Investors interested in the Consumer Staples sector may want to keep a close eye on Fomento Economico and Helen of Troy as they attempt to continue their solid performance.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Helen of Troy Limited (HELE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).