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Are Retail-Wholesale Stocks Lagging Arcos Dorados (ARCO) 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. Is Arcos Dorados (ARCO - Free Report) one of those stocks right now? 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 221 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #7 within 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. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ARCO's full-year earnings has moved 9.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ARCO has gained about 21.9% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 13.1%. This means that Arcos Dorados is performing better than its sector in terms of year-to-date returns.

Another stock in the Retail-Wholesale sector, Urban Outfitters (URBN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 38.7%.

For Urban Outfitters, the consensus EPS estimate for the current year has increased 10.6% 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 41 individual stocks and currently sits at #35 in the Zacks Industry Rank. Stocks in this group have gained about 10.1% so far this year, so ARCO is performing better this group in terms of year-to-date returns.

In contrast, Urban Outfitters falls under the Retail - Apparel and Shoes industry. Currently, this industry has 44 stocks and is ranked #203. Since the beginning of the year, the industry has moved -5.4%.

Arcos Dorados and Urban Outfitters 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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