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Is Ambev (ABEV) Outperforming Other Consumer Staples Stocks This Year?

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For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Ambev (ABEV - 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.

Ambev is a member of the Consumer Staples sector. This group includes 194 individual stocks and currently holds a Zacks Sector Rank of #12. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ambev is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ABEV's full-year earnings has moved 3.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ABEV has returned 7% so far this year. At the same time, Consumer Staples stocks have lost an average of 1.3%. This means that Ambev is outperforming the sector as a whole this year.

Another stock in the Consumer Staples sector, Coty (COTY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 36.7%.

In Coty's case, the consensus EPS estimate for the current year increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Ambev belongs to the Beverages - Alcohol industry, which includes 18 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have gained 2.6% this year, meaning that ABEV is performing better in terms of year-to-date returns.

On the other hand, Coty belongs to the Cosmetics industry. This 14-stock industry is currently ranked #165. The industry has moved -18.2% year to date.

Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Ambev and Coty as they could maintain their solid performance.


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