For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Coca-Cola European (CCEP) 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.
Coca-Cola European is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #13 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 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. Coca-Cola European is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CCEP's full-year earnings has moved 7.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CCEP has returned about 12.8% since the start of the calendar year. At the same time, Consumer Staples stocks have gained an average of 2.8%. This shows that Coca-Cola European is outperforming its peers so far this year.
Another stock in the Consumer Staples sector, Local Bounti Corporation (LOCL), has outperformed the sector so far this year. The stock's year-to-date return is 20.8%.
Over the past three months, Local Bounti Corporation's consensus EPS estimate for the current year has increased 30.4%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Coca-Cola European is a member of the Beverages - Soft drinks industry, which includes 16 individual companies and currently sits at #30 in the Zacks Industry Rank. This group has gained an average of 4% so far this year, so CCEP is performing better in this area.
Local Bounti Corporation, however, belongs to the Agriculture - Operations industry. Currently, this 14-stock industry is ranked #187. The industry has moved +5% so far this year.
Investors interested in the Consumer Staples sector may want to keep a close eye on Coca-Cola European and Local Bounti Corporation as they attempt to continue their solid performance.
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Coca-Cola Europacific Partners (CCEP): Free Stock Analysis Report Local Bounti Corporation (LOCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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