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Is Arcos Dorados (ARCO) Stock Outpacing Its Retail-Wholesale Peers 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. Arcos Dorados (ARCO - 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 Retail-Wholesale sector should help us answer this question.

Arcos Dorados is a member of our Retail-Wholesale group, which includes 232 different companies and currently sits at #6 in 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).

Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 23.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ARCO has gained about 36% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 11.5% on average. This means that Arcos Dorados is outperforming the sector as a whole this year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Lithia Motors (LAD - Free Report) . The stock is up 14.3% year-to-date.

Over the past three months, Lithia Motors' consensus EPS estimate for the current year has increased 4.3%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Arcos Dorados belongs to the Retail - Restaurants industry, a group that includes 44 individual companies and currently sits at #192 in the Zacks Industry Rank. This group has lost an average of 13.1% so far this year, so ARCO is performing better in this area.

Lithia Motors, however, belongs to the Automotive - Retail and Whole Sales industry. Currently, this 10-stock industry is ranked #9. The industry has moved -1.2% so far this year.

Investors with an interest in Retail-Wholesale stocks should continue to track Arcos Dorados and Lithia Motors. These stocks will be looking to continue their solid performance.


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Lithia Motors, Inc. (LAD) - free report >>

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