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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. Is Arcos Dorados (ARCO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

Arcos Dorados is a member of the Retail-Wholesale sector. This group includes 227 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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 11.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ARCO has returned about 25.6% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of -26.3%. As we can see, Arcos Dorados is performing better than its sector in the calendar year.

TravelCenters of America is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.1%.

Over the past three months, TravelCenters of America's consensus EPS estimate for the current year has increased 128.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, which includes 41 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, this group has lost an average of 14% so far this year, meaning that ARCO is performing better in terms of year-to-date returns.

On the other hand, TravelCenters of America belongs to the Retail - Convenience Stores industry. This 2-stock industry is currently ranked #3. The industry has moved +7.8% year to date.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Arcos Dorados and TravelCenters of America as they could maintain their solid performance.


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