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Is Arcos Dorados (ARCO) Stock Outpacing Its Retail-Wholesale Peers 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 one of 230 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. 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).

The Zacks Consensus Estimate for ARCO's full-year earnings has moved 18.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ARCO has returned 23.5% so far this year. At the same time, Retail-Wholesale stocks have lost an average of 27%. This means that Arcos Dorados is performing better than its sector in terms of year-to-date returns.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Penske Automotive (PAG - Free Report) . The stock has returned 6.4% year-to-date.

Over the past three months, Penske Automotive's consensus EPS estimate for the current year has increased 15.7%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Arcos Dorados belongs to the Retail - Restaurants industry, a group that includes 43 individual companies and currently sits at #208 in the Zacks Industry Rank. On average, this group has lost an average of 22% so far this year, meaning that ARCO is performing better in terms of year-to-date returns.

On the other hand, Penske Automotive belongs to the Automotive - Retail and Whole Sales industry. This 10-stock industry is currently ranked #32. The industry has moved -3.5% year to date.

Arcos Dorados and Penske Automotive could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.


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Penske Automotive Group, Inc. (PAG) - free report >>

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