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Is Grocery Outlet Holding (GO) Outperforming Other Consumer Staples Stocks This Year?

Zacks Equity Research

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Grocery Outlet Holding (GO) 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.

Grocery Outlet Holding is a member of our Consumer Staples group, which includes 176 different companies and currently sits at #12 in the Zacks Sector Rank. 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 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. GO is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for GO's full-year earnings has moved 8.93% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that GO has returned about 4.75% since the start of the calendar year. At the same time, Consumer Staples stocks have lost an average of 15.80%. This means that Grocery Outlet Holding is performing better than its sector in terms of year-to-date returns.

To break things down more, GO belongs to the Consumer Products - Staples industry, a group that includes 16 individual companies and currently sits at #83 in the Zacks Industry Rank. This group has lost an average of 3.91% so far this year, so GO is performing better in this area.

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


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