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

BJRI ARCO

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Arcos Dorados (ARCO - Free Report) one of those stocks right now? 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 220 different companies and currently sits at #3 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 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. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 10.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ARCO has gained about 30.4% so far this year. In comparison, Retail-Wholesale companies have returned an average of 20.3%. This means that Arcos Dorados is performing better than its sector in terms of year-to-date returns.

One other Retail-Wholesale stock that has outperformed the sector so far this year is BJ's Restaurants (BJRI - Free Report) . The stock is up 29.4% year-to-date.

Over the past three months, BJ's Restaurants' consensus EPS estimate for the current year has increased 26.7%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, a group that includes 41 individual stocks and currently sits at #36 in the Zacks Industry Rank. This group has gained an average of 9.2% so far this year, so ARCO is performing better in this area. BJ's Restaurants is also part of the same industry.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Arcos Dorados and BJ's Restaurants as they attempt to continue their solid performance.

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