Has Pepsico (PEP) Outpaced Other Consumer Staples Stocks This Year?
The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Pepsico (PEP) one of those stocks right now? 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 one of 176 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. 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 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 0.02% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, PEP has returned 16.87% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 16.26% on average. This means that Pepsico is performing better than its sector in terms of year-to-date returns.
Looking more specifically, PEP belongs to the Beverages - Soft drinks industry, which includes 18 individual stocks and currently sits at #109 in the Zacks Industry Rank. On average, this group has gained an average of 10.80% so far this year, meaning that PEP is performing better in terms of year-to-date returns.
PEP will likely be looking to continue its solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to the company.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.