For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Hormel Foods (HRL) one of those stocks right now? 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.
Hormel Foods is one of 173 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Hormel Foods is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for HRL's full-year earnings has moved 4.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, HRL has moved about 9.8% on a year-to-date basis. At the same time, Consumer Staples stocks have gained an average of 8.2%. This shows that Hormel Foods is outperforming its peers so far this year.
Kenvue (KVUE) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 9.9%.
Over the past three months, Kenvue's consensus EPS estimate for the current year has increased 5.3%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Hormel Foods is a member of the Food - Meat Products industry, which includes 5 individual companies and currently sits at #70 in the Zacks Industry Rank. This group has lost an average of 2.5% so far this year, so HRL is performing better in this area.
In contrast, Kenvue falls under the Consumer Products - Staples industry. Currently, this industry has 35 stocks and is ranked #172. Since the beginning of the year, the industry has moved +2.6%.
Investors interested in the Consumer Staples sector may want to keep a close eye on Hormel Foods and Kenvue as they attempt to continue their solid performance.
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Hormel Foods Corporation (HRL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).