Are Consumer Staples Stocks Lagging Mondelez International (MDLZ) This Year?

Mondelez International (MDLZ) is outperforming its Consumer Staples peers, with a year-to-date return of 11.7% compared to the group's average of 6.4%; the Zacks Consensus Estimate for MDLZ's full-year earnings has moved 4.3% higher over the past three months, resulting in a Zacks Rank of #2 (Buy). Another outperformer in the sector is Coca-Cola HBC (CCHGY), which has returned 53.2% year-to-date, with its current year EPS consensus estimate increasing 6.7% over the past three months and also earning a Zacks Rank of #2 (Buy).

Analysis

Mondelez International (MDLZ) is demonstrating notable strength within the Consumer Staples sector, evidenced by an 11.7% year-to-date (YTD) return, significantly outpacing the sector's average gain of 6.4%. This outperformance is supported by improving analyst sentiment, as the Zacks Consensus Estimate for MDLZ's full-year earnings has increased by 4.3% over the past three months, leading to a Zacks Rank of #2 (Buy). MDLZ also stands out within its specific Food - Miscellaneous industry, which has recorded an average YTD loss of 3.3%, highlighting Mondelez's superior performance. Similarly, Coca-Cola HBC (CCHGY) has delivered an exceptional 53.2% YTD return, also earning a Zacks Rank #2 (Buy). This is accompanied by a 6.7% rise in its current year EPS consensus estimate over the past three months. CCHGY's gains substantially exceed the 7.7% YTD increase of its Beverages - Soft drinks industry. The positive earnings estimate revisions and strong relative price performance for both companies suggest an improving earnings outlook, which, according to the Zacks methodology, often precedes market outperformance over the next one to three months.

Key Decisions for Investors

• Investors looking for outperforming stocks within the Consumer Staples sector should consider Mondelez (MDLZ) and Coca-Cola HBC (CCHGY) due to their strong year-to-date returns and positive earnings estimate revisions.
• The Zacks Rank #2 (Buy) for both MDLZ and CCHGY indicates a favorable earnings outlook, suggesting potential for continued price appreciation in the near term.
• It is advisable to monitor ongoing analyst estimate revisions and relative strength compared to their respective industries and the broader Consumer Staples sector to confirm the sustainability of their current momentum.