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Is ColgatePalmolive (CL) Stock Outpacing Its Consumer Staples Peers This Year?

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Colgate-Palmolive (CL) 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.

Colgate-Palmolive is one of 184 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #9 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Colgate-Palmolive is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CL's full-year earnings has moved 1.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, CL has gained about 29.6% so far this year. In comparison, Consumer Staples companies have returned an average of 8.7%. As we can see, Colgate-Palmolive is performing better than its sector in the calendar year.

One other Consumer Staples stock that has outperformed the sector so far this year is Kimberly-Clark (KMB). The stock is up 16.2% year-to-date.

In Kimberly-Clark's case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Colgate-Palmolive belongs to the Soap and Cleaning Materials industry, a group that includes 7 individual stocks and currently sits at #19 in the Zacks Industry Rank. This group has gained an average of 22.7% so far this year, so CL is performing better in this area.

In contrast, Kimberly-Clark falls under the Consumer Products - Staples industry. Currently, this industry has 28 stocks and is ranked #142. Since the beginning of the year, the industry has moved +6.2%.

Colgate-Palmolive and Kimberly-Clark 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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