The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Chefs’ Warehouse (CHEF) one of those stocks right now? 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.
Chefs’ Warehouse is one of 185 companies in the Consumer Staples group. The Consumer Staples group currently sits at #16 within the Zacks Sector Rank. 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. Chefs’ Warehouse is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CHEF’s full-year earnings has moved 7.2% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, CHEF has returned 72.2% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 10.5% on a year-to-date basis. This means that Chefs’ Warehouse is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Darling Ingredients (DAR). The stock has returned 85.9% year-to-date.
In Darling Ingredients’ case, the consensus EPS estimate for the current year increased 53.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Chefs’ Warehouse is a member of the Food – Miscellaneous industry, which includes 45 individual companies and currently sits at #185 in the Zacks Industry Rank. On average, stocks in this group have gained 5.9% this year, meaning that CHEF is performing better in terms of year-to-date returns. Darling Ingredients is also part of the same industry.
Chefs’ Warehouse and Darling Ingredients could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
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The Chefs’ Warehouse, Inc. (CHEF) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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