Is Coca-Cola Europacific Partners (CCEP) Stock Outpacing Its Consumer Staples Peers This Year?
For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Coca-Cola European (CCEP) 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.
Coca-Cola European is one of 198 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #4 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Coca-Cola European is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CCEP's full-year earnings has moved 5.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CCEP has returned 1.9% so far this year. Meanwhile, stocks in the Consumer Staples group have lost about 2% on average. This means that Coca-Cola European is outperforming the sector as a whole this year.
Chewy (CHWY) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.2%.
In Chewy's case, the consensus EPS estimate for the current year increased 70.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Coca-Cola European belongs to the Beverages - Soft drinks industry, a group that includes 16 individual stocks and currently sits at #27 in the Zacks Industry Rank. On average, stocks in this group have gained 6.7% this year, meaning that CCEP is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Chewy falls under the Consumer Products - Staples industry. Currently, this industry has 29 stocks and is ranked #189. Since the beginning of the year, the industry has moved -23.7%.
Coca-Cola European and Chewy 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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CocaCola Europacific Partners (CCEP) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
