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Has Arcos Dorados (ARCO) Outpaced Other Retail-Wholesale Stocks This Year?

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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. 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? Let's take a closer look at the stock's year-to-date performance to find out.

Arcos Dorados is a member of our Retail-Wholesale group, which includes 231 different companies and currently sits at #8 in the Zacks Sector Rank. 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 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. Arcos Dorados is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 23.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ARCO has gained about 29.5% so far this year. In comparison, Retail-Wholesale companies have returned an average of -7.5%. This means that Arcos Dorados is outperforming the sector as a whole this year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Lithia Motors (LAD - Free Report) . The stock has returned 13.8% year-to-date.

The consensus estimate for Lithia Motors' current year EPS has increased 9.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arcos Dorados belongs to the Retail - Restaurants industry, a group that includes 43 individual stocks and currently sits at #163 in the Zacks Industry Rank. Stocks in this group have lost about 14.5% so far this year, so ARCO is performing better this group in terms of year-to-date returns.

Lithia Motors, however, belongs to the Automotive - Retail and Whole Sales industry. Currently, this 10-stock industry is ranked #10. The industry has moved +3.1% so far this year.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Arcos Dorados and Lithia Motors as they attempt to continue their solid performance.


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

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