The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Lamb Weston (LW) been one of those stocks this year? 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.
Lamb Weston is one of 192 companies in the Consumer Staples group. The Consumer Staples group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Lamb Weston is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for LW's full-year earnings has moved 14.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, LW has returned 27.2% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 2.1% on a year-to-date basis. This means that Lamb Weston is performing better than its sector in terms of year-to-date returns.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Procter & Gamble (PG). The stock has returned 2.3% year-to-date.
In Procter & Gamble's case, the consensus EPS estimate for the current year increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Lamb Weston belongs to the Food - Miscellaneous industry, a group that includes 49 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 4.8% so far this year, so LW is performing better this group in terms of year-to-date returns.
Procter & Gamble, however, belongs to the Soap and Cleaning Materials industry. Currently, this 7-stock industry is ranked #27. The industry has moved +5.3% so far this year.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Lamb Weston and Procter & Gamble as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report