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Is Imperial Tobacco Group (IMBBY) Stock Outpacing Its Consumer Staples Peers This Year?

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The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Imperial Tobacco Group PLC (IMBBY - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.

Imperial Tobacco Group PLC is one of 178 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #13 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 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. Imperial Tobacco Group PLC is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for IMBBY's full-year earnings has moved 1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, IMBBY has returned 23.6% so far this year. In comparison, Consumer Staples companies have returned an average of 5.1%. This means that Imperial Tobacco Group PLC is outperforming the sector as a whole this year.

One other Consumer Staples stock that has outperformed the sector so far this year is L'Oreal SA (LRLCY - Free Report) . The stock is up 19.9% year-to-date.

Over the past three months, L'Oreal SA's consensus EPS estimate for the current year has increased 1.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Imperial Tobacco Group PLC belongs to the Tobacco industry, which includes 7 individual stocks and currently sits at #44 in the Zacks Industry Rank. On average, stocks in this group have gained 40.5% this year, meaning that IMBBY is slightly underperforming its industry in terms of year-to-date returns.

In contrast, L'Oreal SA falls under the Consumer Products - Staples industry. Currently, this industry has 35 stocks and is ranked #92. Since the beginning of the year, the industry has moved -4.7%.

Investors interested in the Consumer Staples sector may want to keep a close eye on Imperial Tobacco Group PLC and L'Oreal SA as they attempt to continue their solid performance.


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