For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Beyond Meat (BYND) 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.
Beyond Meat is one of 198 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #10 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Beyond Meat is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BYND's full-year earnings has moved 2.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BYND has returned about 27.9% since the start of the calendar year. Meanwhile, the Consumer Staples sector has returned an average of -1% on a year-to-date basis. As we can see, Beyond Meat is performing better than its sector in the calendar year.
Coca-Cola HBC (CCHGY) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15.8%.
In Coca-Cola HBC's case, the consensus EPS estimate for the current year increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Beyond Meat belongs to the Food - Meat Products industry, a group that includes 6 individual companies and currently sits at #216 in the Zacks Industry Rank. Stocks in this group have lost about 7.8% so far this year, so BYND is performing better this group in terms of year-to-date returns.
Coca-Cola HBC, however, belongs to the Beverages - Soft drinks industry. Currently, this 16-stock industry is ranked #62. The industry has moved -0.3% so far this year.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Beyond Meat and Coca-Cola HBC as they could maintain their solid performance.
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