Are Retail-Wholesale Stocks Lagging Arcos Dorados (ARCO) This Year?
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arcos Dorados (ARCO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Arcos Dorados is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #8 in 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 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. Arcos Dorados is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 9.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ARCO has gained about 47.4% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 24.9% on average. As we can see, Arcos Dorados is performing better than its sector in the calendar year.
Wayfair (W) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 95.1%.
In Wayfair's case, the consensus EPS estimate for the current year increased 9.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Arcos Dorados is a member of the Retail - Restaurants industry, which includes 42 individual companies and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have gained about 10.4% so far this year, so ARCO is performing better this group in terms of year-to-date returns.
Wayfair, however, belongs to the Internet - Commerce industry. Currently, this 42-stock industry is ranked #35. The industry has moved +50.7% so far this year.
Arcos Dorados and Wayfair could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Wayfair Inc. (W) : Free Stock Analysis Report
