The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Starbucks (SBUX) one of those stocks right now? 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.
Starbucks is one of 183 individual stocks in the Retail-Wholesale 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Starbucks is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SBUX's full-year earnings has moved 3.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, SBUX has gained about 18% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 2.2% on average. This shows that Starbucks is outperforming its peers so far this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Urban Outfitters (URBN). The stock is up 16% year-to-date.
In Urban Outfitters' case, the consensus EPS estimate for the current year increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Starbucks is a member of the Retail - Restaurants industry, which includes 37 individual companies and currently sits at #79 in the Zacks Industry Rank. On average, this group has lost an average of 8.6% so far this year, meaning that SBUX is performing better in terms of year-to-date returns.
On the other hand, Urban Outfitters belongs to the Retail - Apparel and Shoes industry. This 38-stock industry is currently ranked #160. The industry has moved -9.7% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Starbucks and Urban Outfitters as they attempt to continue their solid performance.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).