Are Consumer Staples Stocks Lagging e.l.f. Beauty (ELF) This Year?
The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is e.l.f. Beauty (ELF) 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.
e.l.f. Beauty is one of 198 companies in the Consumer Staples group. The Consumer Staples group currently sits at #14 within 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 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. e.l.f. Beauty is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ELF's full-year earnings has moved 32.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ELF has returned about 34.4% since the start of the calendar year. Meanwhile, the Consumer Staples sector has returned an average of -2.2% on a year-to-date basis. This means that e.l.f. Beauty is performing better than its sector in terms of year-to-date returns.
One other Consumer Staples stock that has outperformed the sector so far this year is Inter Parfums (IPAR). The stock is up 45.6% year-to-date.
Over the past three months, Inter Parfums' consensus EPS estimate for the current year has increased 8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, e.l.f. Beauty is a member of the Cosmetics industry, which includes 14 individual companies and currently sits at #166 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so ELF is performing better in this area. Inter Parfums is also part of the same industry.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to e.l.f. Beauty and Inter Parfums as they could maintain their solid performance.
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