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Has The Chef's Warehouse (CHEF) Outpaced Other Consumer Staples Stocks 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. Chefs' Warehouse (CHEF - 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.

Chefs' Warehouse is one of 199 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Chefs' Warehouse is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CHEF's full-year earnings has moved 73.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CHEF has returned about 0.1% since the start of the calendar year. At the same time, Consumer Staples stocks have lost an average of 5.9%. As we can see, Chefs' Warehouse is performing better than its sector in the calendar year.

Another stock in the Consumer Staples sector, e.l.f. Beauty (ELF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 14.8%.

For e.l.f. Beauty, the consensus EPS estimate for the current year has increased 16% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Chefs' Warehouse belongs to the Food - Miscellaneous industry, which includes 50 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, stocks in this group have gained 0.1% this year, meaning that CHEF is performing on par in terms of year-to-date returns.

On the other hand, e.l.f. Beauty belongs to the Cosmetics industry. This 14-stock industry is currently ranked #155. The industry has moved -34.6% year to date.

Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Chefs' Warehouse and e.l.f. Beauty as they could maintain their solid performance.


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