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Is Arcos Dorados (ARCO) Stock Outpacing Its Retail-Wholesale Peers 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. Has Arcos Dorados (ARCO - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

Arcos Dorados is a member of our Retail-Wholesale group, which includes 220 different companies and currently sits at #8 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 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 90 days, the Zacks Consensus Estimate for ARCO's full-year earnings has moved 9.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ARCO has returned 51.8% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 28% on average. This means that Arcos Dorados is performing better than its sector in terms of year-to-date returns.

Another stock in the Retail-Wholesale sector, Booking Holdings (BKNG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 76%.

Over the past three months, Booking Holdings' consensus EPS estimate for the current year has increased 3.8%. 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 41 individual companies and currently sits at #66 in the Zacks Industry Rank. On average, stocks in this group have gained 11.7% this year, meaning that ARCO is performing better in terms of year-to-date returns.

On the other hand, Booking Holdings belongs to the Internet - Commerce industry. This 42-stock industry is currently ranked #43. The industry has moved +55% year to date.

Arcos Dorados and Booking Holdings could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.


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