Back to top

Image: Bigstock

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

Read MoreHide Full Article

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Arcos Dorados (ARCO - Free Report) one of those stocks right now? 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 the Retail-Wholesale sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #6. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Arcos Dorados is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 25.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ARCO has moved about 32.1% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of -9.4% on a year-to-date basis. This shows that Arcos Dorados is outperforming its peers so far this year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Chico's FAS . The stock is up 0.4% year-to-date.

Over the past three months, Chico's FAS's consensus EPS estimate for the current year has increased 9.5%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Arcos Dorados belongs to the Retail - Restaurants industry, a group that includes 43 individual companies and currently sits at #168 in the Zacks Industry Rank. Stocks in this group have lost about 13.1% so far this year, so ARCO is performing better this group in terms of year-to-date returns.

In contrast, Chico's FAS falls under the Retail - Apparel and Shoes industry. Currently, this industry has 43 stocks and is ranked #98. Since the beginning of the year, the industry has moved -24.8%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Arcos Dorados Holdings Inc. (ARCO) - free report >>

Published in