For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cheesecake Factory (CAKE) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Cheesecake Factory is one of 187 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cheesecake Factory is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CAKE's full-year earnings has moved 9.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CAKE has returned 108.6% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 7.5%. This means that Cheesecake Factory is outperforming the sector as a whole this year.
Haverty Furniture (HVT) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 23.6%.
In Haverty Furniture's case, the consensus EPS estimate for the current year increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cheesecake Factory is a member of the Retail - Restaurants industry, which includes 36 individual companies and currently sits at #193 in the Zacks Industry Rank. Stocks in this group have gained about 3% so far this year, so CAKE is performing better this group in terms of year-to-date returns.
On the other hand, Haverty Furniture belongs to the Retail - Home Furnishings industry. This 10-stock industry is currently ranked #184. The industry has moved +0.6% year to date.
Investors with an interest in Retail-Wholesale stocks should continue to track Cheesecake Factory and Haverty Furniture. These stocks will be looking to continue their solid performance.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Cheesecake Factory Incorporated (CAKE): Free Stock Analysis Report
Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).