Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Restaurant Brands (QSR) 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? 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.
Restaurant Brands is a member of our Retail-Wholesale group, which includes 186 different companies and currently sits at #8 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 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. Restaurant Brands is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for QSR's full-year earnings has moved 1.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that QSR has returned about 15.7% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of 6.2% on a year-to-date basis. This means that Restaurant Brands is outperforming the sector as a whole this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Tilly's (TLYS). The stock is up 170.9% year-to-date.
The consensus estimate for Tilly's' current year EPS has increased 78.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Restaurant Brands belongs to the Retail - Restaurants industry, a group that includes 37 individual companies and currently sits at #190 in the Zacks Industry Rank. On average, this group has gained an average of 5.4% so far this year, meaning that QSR is performing better in terms of year-to-date returns.
In contrast, Tilly's falls under the Retail - Apparel and Shoes industry. Currently, this industry has 39 stocks and is ranked #72. Since the beginning of the year, the industry has moved +0%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Restaurant Brands and Tilly's as they attempt to continue their solid performance.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See Stocks 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
Restaurant Brands International Inc. (QSR): Free Stock Analysis Report
Tilly's, Inc. (TLYS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).