Investors focused on the Consumer Staples space have likely heard of Pepsico (PEP), but is the stock performing well in comparison to the rest of its sector peers? 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.
Pepsico is a member of our Consumer Staples group, which includes 165 different companies and currently sits at #13 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. PEP is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PEP's full-year earnings has moved 0.22% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, PEP has returned 16.41% so far this year. In comparison, Consumer Staples companies have returned an average of 11.81%. This means that Pepsico is performing better than its sector in terms of year-to-date returns.
To break things down more, PEP belongs to the Beverages - Soft drinks industry, a group that includes 18 individual companies and currently sits at #169 in the Zacks Industry Rank. On average, stocks in this group have gained 10.23% this year, meaning that PEP is performing better in terms of year-to-date returns.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to PEP as it looks to continue its solid performance.
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