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

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Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. 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? Let's take a closer look at the stock's year-to-date performance to find out.

Arcos Dorados is a member of the Retail-Wholesale sector. This group includes 229 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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).

Within the past quarter, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 34.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ARCO has moved about 28.5% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 15.3%. As we can see, Arcos Dorados is performing better than its sector in the calendar year.

Another stock in the Retail-Wholesale sector, Dillard's (DDS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 23.1%.

For Dillard's, the consensus EPS estimate for the current year has increased 27.1% over the past three months. 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 #189 in the Zacks Industry Rank. This group has lost an average of 10.1% so far this year, so ARCO is performing better in this area.

In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 3 stocks and is ranked #94. Since the beginning of the year, the industry has moved -14.3%.

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


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