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Is Arcos Dorados (ARCO) Stock Outpacing Its Retail-Wholesale Peers This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Arcos Dorados (ARCO - Free Report) one of those stocks right now? 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 218 different companies and currently sits at #8 in 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 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 9.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ARCO has moved about 13.2% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 12.6% on average. This means that Arcos Dorados is outperforming the sector as a whole this year.

Chipotle Mexican Grill (CMG - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 47.7%.

In Chipotle Mexican Grill's case, the consensus EPS estimate for the current year increased 6% over the past three months. 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 39 individual companies and currently sits at #34 in the Zacks Industry Rank. Stocks in this group have gained about 12.8% so far this year, so ARCO is performing better this group in terms of year-to-date returns. Chipotle Mexican Grill is also part of the same industry.

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


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Chipotle Mexican Grill, Inc. (CMG) - free report >>

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

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