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Are Retail-Wholesale Stocks Lagging Arcos Dorados (ARCO) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Arcos Dorados is one of 229 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 10.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ARCO has gained about 27.6% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -21.5% on a year-to-date basis. As we can see, Arcos Dorados is performing better than its sector in the calendar year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dillard's (DDS - Free Report) . The stock has returned 17.3% year-to-date.

The consensus estimate for Dillard's' current year EPS has increased 36.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, which includes 43 individual stocks and currently sits at #157 in the Zacks Industry Rank. Stocks in this group have lost about 10.9% so far this year, so ARCO is performing better this group in terms of year-to-date returns.

In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 3 stocks and is ranked #99. Since the beginning of the year, the industry has moved -23.9%.

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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