For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Kraft Heinz (KHC) 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.
Kraft Heinz is one of 191 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Kraft Heinz is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for KHC's full-year earnings has moved 0.9% 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, KHC has returned 3.2% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 0.8% on average. This shows that Kraft Heinz is outperforming its peers so far this year.
One other Consumer Staples stock that has outperformed the sector so far this year is McCormick (MKC). The stock is up 9.2% year-to-date.
The consensus estimate for McCormick's current year EPS has increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Kraft Heinz belongs to the Food - Miscellaneous industry, a group that includes 45 individual companies and currently sits at #94 in the Zacks Industry Rank. Stocks in this group have gained about 2% so far this year, so KHC is performing better this group in terms of year-to-date returns. McCormick is also part of the same industry.
Kraft Heinz and McCormick could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>Kraft Heinz Company (KHC) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
