Is Chewy (CHWY) Stock Outpacing Its Consumer Staples Peers This Year?

·2 min read

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Chewy (CHWY) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Chewy is one of 198 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Chewy is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CHWY's full-year earnings has moved 15% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, CHWY has moved about 2.5% on a year-to-date basis. Meanwhile, stocks in the Consumer Staples group have lost about 2.5% on average. This shows that Chewy is outperforming its peers so far this year.

Another Consumer Staples stock, which has outperformed the sector so far this year, is Ingredion (INGR). The stock has returned 0.5% year-to-date.

The consensus estimate for Ingredion's current year EPS has increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Chewy belongs to the Consumer Products - Staples industry, which includes 30 individual stocks and currently sits at #153 in the Zacks Industry Rank. On average, stocks in this group have lost 5.7% this year, meaning that CHWY is performing better in terms of year-to-date returns.

In contrast, Ingredion falls under the Food - Miscellaneous industry. Currently, this industry has 50 stocks and is ranked #146. Since the beginning of the year, the industry has moved -4.1%.

Chewy and Ingredion 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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