Do These Consumer Staples Stocks Deserve Your Investment Attention?

The Consumer Staples sector currently comprises 179 individual stocks and ranks #14 among 16 sector groups evaluated by the Zacks system. For investors seeking standout opportunities within consumer staples stocks, the question isn’t simply which ones are performing well—it’s which ones are significantly outpacing their peers. European Wax Center, Inc. (EWCZ) offers an intriguing case study in sector-beating performance that warrants closer examination.

EWCZ’s Remarkable Outperformance Against Consumer Staples Benchmarks

European Wax Center has delivered exceptional returns compared to the broader consumer staples stocks category. Year-to-date, EWCZ has gained approximately 58.9%, while the Consumer Staples sector as a whole has returned an average of just 13.2%. This significant outperformance—roughly 45.7 percentage points ahead of sector peers—doesn’t happen by accident. The company currently carries a Zacks Rank of #2 (Buy), indicating strong fundamental characteristics. Within the past quarter, analyst sentiment has notably strengthened, with the Zacks Consensus Estimate for EWCZ’s full-year earnings rising 6.7%, suggesting improved confidence in the company’s profitability trajectory.

Strong Earnings Momentum Backing the Rally

The divergence between EWCZ’s performance and that of consumer staples stocks more broadly reflects fundamental momentum. When analyst earnings estimates move meaningfully higher, it often signals that a company possesses competitive advantages or operational improvements that markets are recognizing. In contrast, consider PepsiCo (PEP), another consumer staples stocks representative that has also outperformed its sector with year-to-date gains of 17.9%. However, PepsiCo’s consensus EPS estimate increased just 0.7% over three months—a more modest pace than EWCZ’s confidence boost. Both securities maintain Zacks Rank #2 (Buy) ratings, yet the divergence in earnings estimate revisions highlights why EWCZ’s trajectory appears steeper.

Industry Context: Finding Performance Leaders

The broader picture becomes clearer when examining industry-level positioning. EWCZ operates within the Cosmetics industry, a 9-stock group currently ranked #198 in the Zacks Industry Rank. Notably, this industry has declined 0.4% year-to-date on average, making EWCZ’s 58.9% return all the more impressive—the stock substantially eclipses both its industry peers and consumer staples stocks benchmarks. PepsiCo, by contrast, belongs to the Beverages - Soft drinks industry, a 19-stock category ranked #157 with year-to-date gains of 13.5%. This context underscores why EWCZ’s performance stands out as exceptional within the consumer staples stocks landscape.

Why Investors Should Monitor These Opportunities

For those building or refining exposure to consumer staples stocks, the analytical framework provides valuable guidance. EWCZ demonstrates that superior earnings momentum and positive analyst revisions can drive substantial outperformance within traditionally stable sectors. Its position as a clear winner in a declining industry segment, paired with its strong Zacks Rank, suggests the market recognizes genuine value creation. Both EWCZ and PepsiCo merit positions on investors’ watchlists, but EWCZ’s trajectory offers a compelling reminder that consumer staples stocks aren’t uniformly defensive—some can deliver truly impressive returns when operational excellence and analyst confidence align.