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Is Adecoagro (AGRO) Stock Outpacing Its Consumer Staples Peers This Year?

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For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Adecoagro (AGRO - Free Report) 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.

Adecoagro is a member of the Consumer Staples sector. This group includes 195 individual stocks and currently holds a Zacks Sector Rank of #15. 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 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. Adecoagro is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for AGRO's full-year earnings has moved 36.1% 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, AGRO has returned 52.1% so far this year. Meanwhile, stocks in the Consumer Staples group have lost about 3.8% on average. This means that Adecoagro is performing better than its sector in terms of year-to-date returns.

One other Consumer Staples stock that has outperformed the sector so far this year is McCormick (MKC - Free Report) . The stock is up 1.2% year-to-date.

In McCormick's case, the consensus EPS estimate for the current year increased 0.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Adecoagro belongs to the Agriculture - Operations industry, which includes 13 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 6.3% so far this year, so AGRO is performing better in this area.

McCormick, however, belongs to the Food - Miscellaneous industry. Currently, this 48-stock industry is ranked #225. The industry has moved +1.8% so far this year.

Adecoagro and McCormick 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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McCormick & Company, Incorporated (MKC) - free report >>

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