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Is Danone (DANOY) Stock Outpacing Its Consumer Staples Peers This Year?

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Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Is Danone (DANOY - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Danone is one of 178 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. 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. Danone is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DANOY's full-year earnings has moved 10.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that DANOY has returned about 21.5% since the start of the calendar year. Meanwhile, the Consumer Staples sector has returned an average of 4.9% on a year-to-date basis. This means that Danone is outperforming the sector as a whole this year.

Another stock in the Consumer Staples sector, Heineken NV (HEINY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 21.9%.

In Heineken NV'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).

To break things down more, Danone belongs to the Food - Miscellaneous industry, a group that includes 41 individual companies and currently sits at #182 in the Zacks Industry Rank. On average, stocks in this group have lost 4.7% this year, meaning that DANOY is performing better in terms of year-to-date returns.

Heineken NV, however, belongs to the Beverages - Alcohol industry. Currently, this 17-stock industry is ranked #52. The industry has moved +0.5% so far this year.

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


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