The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Etsy (ETSY) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Etsy is one of 186 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Etsy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ETSY's full-year earnings has moved 43.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ETSY has returned 7.5% so far this year. In comparison, Retail-Wholesale companies have returned an average of 4.8%. This means that Etsy is performing better than its sector in terms of year-to-date returns.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Figs (FIGS). The stock has returned 41.4% year-to-date.
For Figs, the consensus EPS estimate for the current year has increased 136.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Etsy belongs to the Internet - Commerce industry, which includes 33 individual stocks and currently sits at #152 in the Zacks Industry Rank. This group has gained an average of 3.4% so far this year, so ETSY is performing better in this area.
Figs, however, belongs to the Retail - Apparel and Shoes industry. Currently, this 39-stock industry is ranked #64. The industry has moved -3.9% so far this year.
Investors with an interest in Retail-Wholesale stocks should continue to track Etsy and Figs. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).