The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Sanderson Farms (SAFM) 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.
Sanderson Farms is one of 166 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. SAFM is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SAFM's full-year earnings has moved 967.50% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that SAFM has returned about 29.30% since the start of the calendar year. At the same time, Consumer Staples stocks have gained an average of 12.79%. As we can see, Sanderson Farms is performing better than its sector in the calendar year.
To break things down more, SAFM belongs to the Food - Meat Products industry, a group that includes 5 individual companies and currently sits at #55 in the Zacks Industry Rank. This group has gained an average of 17.35% so far this year, so SAFM is performing better in this area.
Investors with an interest in Consumer Staples stocks should continue to track SAFM. The stock will be looking to continue its solid performance.
Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report
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Zacks Investment Research