The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Vita Coco Company, Inc. (COCO) 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.
Vita Coco Company, Inc. is a member of our Consumer Staples group, which includes 185 different companies and currently sits at #16 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. 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 11.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, COCO has returned 16.3% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 10.3% on average. As we can see, Vita Coco Company, Inc. is performing better than its sector in the calendar year.
Sysco (SYY) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.9%.
In Sysco's case, the consensus EPS estimate for the current year increased 3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Vita Coco Company, Inc. belongs to the Beverages - Soft drinks industry, a group that includes 20 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has gained an average of 16.6% so far this year, so COCO is slightly underperforming its industry in this area.
In contrast, Sysco falls under the Food - Miscellaneous industry. Currently, this industry has 45 stocks and is ranked #198. Since the beginning of the year, the industry has moved +4.9%.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Vita Coco Company, Inc. and Sysco as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).