Are Consumer Staples Stocks Lagging AnheuserBusch InBev (BUD) This Year?
For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Anheuser-Busch Inbev (BUD) one of those stocks right now? 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.
Anheuser-Busch Inbev is a member of the Consumer Staples sector. This group includes 185 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Anheuser-Busch Inbev is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BUD's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BUD has returned about 25.9% since the start of the calendar year. At the same time, Consumer Staples stocks have gained an average of 7%. This shows that Anheuser-Busch Inbev is outperforming its peers so far this year.
Another stock in the Consumer Staples sector, Vita Coco Company, Inc. (COCO), has outperformed the sector so far this year. The stock's year-to-date return is 21.6%.
The consensus estimate for Vita Coco Company, Inc.'s current year EPS has increased 11.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Anheuser-Busch Inbev belongs to the Beverages - Alcohol industry, which includes 17 individual stocks and currently sits at #188 in the Zacks Industry Rank. Stocks in this group have gained about 17% so far this year, so BUD is performing better this group in terms of year-to-date returns.
On the other hand, Vita Coco Company, Inc. belongs to the Beverages - Soft drinks industry. This 20-stock industry is currently ranked #79. The industry has moved +8.7% year to date.
Anheuser-Busch Inbev and Vita Coco Company, Inc. could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
