Are Consumer Staples Stocks Lagging Ahold (ADRNY) This Year?

Ahold NV (ADRNY) is outperforming its consumer staples peers, with a year-to-date return of 28% compared to the sector's average of 7%; analysts' sentiment has improved, as reflected in a 2.9% increase in the Zacks Consensus Estimate for full-year earnings over the past 90 days, giving it a Zacks Rank #2 (Buy). Embotelladora Andina S.A. (AKO.B) is also outperforming with a 38.2% year-to-date return and a 0.6% increase in current year EPS estimates, also holding a Zacks Rank #2 (Buy).

Analysis

Ahold NV (ADRNY) has demonstrated significant outperformance within the Consumer Staples sector (Zacks Sector Rank #12), registering a 28% year-to-date return, substantially exceeding the sector's average gain of 7%. This robust stock performance is supported by improving analyst sentiment, reflected in a 2.9% upward revision in the Zacks Consensus Estimate for ADRNY's full-year earnings over the past 90 days, contributing to its current Zacks Rank of #2 (Buy), which suggests potential for market outperformance over the next one to three months. ADRNY also significantly outpaces its direct sub-industry, the Consumer Products - Staples group (Zacks Industry Rank #152), which has seen a modest 0.7% average gain year-to-date. Similarly, Embotelladora Andina S.A. (AKO.B), another strong performer in the Consumer Staples sector, has delivered an even more impressive year-to-date return of 38.2%. AKO.B also holds a Zacks Rank #2 (Buy), supported by a 0.6% increase in its current year EPS consensus estimate over the last three months. AKO.B belongs to the Beverages - Soft drinks industry (Zacks Industry Rank #46), which has achieved a 7.8% year-to-date gain, indicating that AKO.B is also substantially outperforming its specific industry peers. The positive momentum for both companies, underscored by their strong Zacks Ranks and upward earnings estimate revisions, alongside strongly positive sentiment signals, suggests a favorable near-term outlook.

Key Decisions for Investors

• Investors seeking outperforming names within the Consumer Staples sector should evaluate Ahold NV (ADRNY) and Embotelladora Andina S.A. (AKO.B) given their substantial year-to-date returns and positive earnings estimate trends.
• The Zacks Rank #2 (Buy) for both ADRNY and AKO.B, driven by upward earnings revisions, suggests potential for continued relative strength in the short term, meriting consideration for tactical allocations within portfolios focused on consumer staples.
• Continued monitoring of earnings estimate revisions and relative price performance against their respective industries and the broader Consumer Staples sector is advised to gauge the sustainability of their current outperformance.