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Is Arcos Dorados (ARCO) Outperforming Other Retail-Wholesale Stocks This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arcos Dorados (ARCO - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Arcos Dorados is a member of our Retail-Wholesale group, which includes 232 different companies and currently sits at #11 in 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. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 5.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ARCO has returned about 19% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have lost about 8.5% on average. This means that Arcos Dorados is outperforming the sector as a whole this year.

CBD is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 3.3%.

In CBD's case, the consensus EPS estimate for the current year increased 35.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, which includes 44 individual stocks and currently sits at #226 in the Zacks Industry Rank. On average, stocks in this group have lost 9.6% this year, meaning that ARCO is performing better in terms of year-to-date returns.

On the other hand, CBD belongs to the Retail - Supermarkets industry. This 9-stock industry is currently ranked #52. The industry has moved -5.8% year to date.

Investors with an interest in Retail-Wholesale stocks should continue to track Arcos Dorados and CBD. These stocks will be looking to continue their solid performance.


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