Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Philip Morris (PM) 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? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Philip Morris is a member of the Consumer Staples sector. This group includes 184 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Philip Morris is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PM's full-year earnings has moved 2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, PM has moved about 28.5% on a year-to-date basis. Meanwhile, the Consumer Staples sector has returned an average of 10.4% on a year-to-date basis. This means that Philip Morris is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Pilgrim's Pride (PPC). The stock has returned 55.8% year-to-date.
The consensus estimate for Pilgrim's Pride's current year EPS has increased 12.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Philip Morris belongs to the Tobacco industry, a group that includes 6 individual stocks and currently sits at #15 in the Zacks Industry Rank. This group has gained an average of 30.5% so far this year, so PM is slightly underperforming its industry in this area.
On the other hand, Pilgrim's Pride belongs to the Food - Meat Products industry. This 4-stock industry is currently ranked #45. The industry has moved +11.9% year to date.
Investors with an interest in Consumer Staples stocks should continue to track Philip Morris and Pilgrim's Pride. These stocks will be looking to continue their solid performance.
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