The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Coty (COTY) 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.
Coty is one of 192 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within 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. Coty is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for COTY's full-year earnings has moved 16% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that COTY has returned about 38.3% since the start of the calendar year. Meanwhile, stocks in the Consumer Staples group have gained about 1.6% on average. This means that Coty is performing better than its sector in terms of year-to-date returns.
Coca-Cola FEMSA (KOF) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.6%.
Over the past three months, Coca-Cola FEMSA's consensus EPS estimate for the current year has increased 15.6%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Coty belongs to the Cosmetics industry, a group that includes 14 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, this group has gained an average of 2.5% so far this year, meaning that COTY is performing better in terms of year-to-date returns.
In contrast, Coca-Cola FEMSA falls under the Beverages - Soft drinks industry. Currently, this industry has 16 stocks and is ranked #37. Since the beginning of the year, the industry has moved +4.8%.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Coty and Coca-Cola FEMSA as they could maintain their solid performance.
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