Back to top

Image: Bigstock

Has Hershey (HSY) Outpaced Other Consumer Staples Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Hershey (HSY - 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? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.

Hershey is one of 199 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #11 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 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. Hershey is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for HSY's full-year earnings has moved 2.2% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, HSY has gained about 13.5% so far this year. Meanwhile, the Consumer Staples sector has returned an average of -7.8% on a year-to-date basis. This means that Hershey 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 Industrias Bachoco (IBA - Free Report) . The stock is up 12% year-to-date.

The consensus estimate for Industrias Bachoco's current year EPS has increased 32.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Hershey belongs to the Food - Confectionery industry, a group that includes 3 individual companies and currently sits at #40 in the Zacks Industry Rank. This group has gained an average of 10.1% so far this year, so HSY is performing better in this area.

On the other hand, Industrias Bachoco belongs to the Food - Meat Products industry. This 5-stock industry is currently ranked #61. The industry has moved -15.8% year to date.

Investors interested in the Consumer Staples sector may want to keep a close eye on Hershey and Industrias Bachoco as they attempt to continue their solid performance.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Hershey Company The (HSY) - free report >>

Industrias Bachoco, S.A. de C.V. (IBA) - free report >>

Published in