Is ColgatePalmolive (CL) Outperforming Other Consumer Staples Stocks This Year?
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Colgate-Palmolive (CL) 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? 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.
Colgate-Palmolive is a member of our Consumer Staples group, which includes 193 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Colgate-Palmolive is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CL's full-year earnings has moved 1.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CL has gained about 1.9% so far this year. Meanwhile, the Consumer Staples sector has returned an average of -5.7% on a year-to-date basis. This means that Colgate-Palmolive is outperforming the sector as a whole this year.
One other Consumer Staples stock that has outperformed the sector so far this year is Kerry Group PLC (KRYAY). The stock is up 0% year-to-date.
In Kerry Group PLC's case, the consensus EPS estimate for the current year increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Colgate-Palmolive belongs to the Soap and Cleaning Materials industry, which includes 7 individual stocks and currently sits at #202 in the Zacks Industry Rank. Stocks in this group have gained about 4.9% so far this year, so CL is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Kerry Group PLC belongs to the Food - Miscellaneous industry. This 45-stock industry is currently ranked #185. The industry has moved -5.8% year to date.
Colgate-Palmolive and Kerry Group PLC 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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