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

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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arcos Dorados (ARCO - 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 Retail-Wholesale sector should help us answer this question.

Arcos Dorados is a member of the Retail-Wholesale sector. This group includes 230 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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 90 days, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 18.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ARCO has returned 32.4% so far this year. In comparison, Retail-Wholesale companies have returned an average of -23.1%. As we can see, Arcos Dorados is performing better than its sector in the calendar year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Kroger (KR - Free Report) . The stock is up 17% year-to-date.

In Kroger's case, the consensus EPS estimate for the current year increased 11.6% 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 43 individual stocks and currently sits at #196 in the Zacks Industry Rank. Stocks in this group have lost about 17.8% so far this year, so ARCO is performing better this group in terms of year-to-date returns.

On the other hand, Kroger belongs to the Retail - Supermarkets industry. This 9-stock industry is currently ranked #193. The industry has moved -7.9% year to date.

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


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