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Is British American Tobacco p.l.c. (BTI) Stock Outpacing Its Consumer Staples Peers This Year?

Zacks Equity Research
American Airlines (AAL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is British American Tobacco p.l.c. (BTI) one of those stocks right now? 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.

British American Tobacco p.l.c. is a member of the Consumer Staples sector. This group includes 166 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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. BTI is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for BTI's full-year earnings has moved 3.34% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, BTI has gained about 26.40% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 10.93% on average. This means that British American Tobacco p.l.c. is outperforming the sector as a whole this year.

To break things down more, BTI belongs to the Tobacco industry, a group that includes 8 individual companies and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 23.06% so far this year, so BTI is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to BTI as it looks to continue its solid performance.


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