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Is Danone (DANOY) Stock Outpacing Its Consumer Staples Peers 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. Has Danone (DANOY - Free Report) been one of those stocks this year? 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.

Danone is one of 183 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Danone is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DANOY's full-year earnings has moved 1.9% 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, DANOY has gained about 34.1% so far this year. At the same time, Consumer Staples stocks have gained an average of 0.2%. This means that Danone is performing better than its sector in terms of year-to-date returns.

One other Consumer Staples stock that has outperformed the sector so far this year is Kirin Holdings Co. (KNBWY - Free Report) . The stock is up 21.9% year-to-date.

Over the past three months, Kirin Holdings Co.'s consensus EPS estimate for the current year has increased 1.3%. 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 42 individual companies and currently sits at #186 in the Zacks Industry Rank. On average, stocks in this group have lost 12.9% this year, meaning that DANOY is performing better in terms of year-to-date returns.

Kirin Holdings Co., however, belongs to the Beverages - Alcohol industry. Currently, this 16-stock industry is ranked #145. The industry has moved -3.7% so far this year.

Danone and Kirin Holdings Co. could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.


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