For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group 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 183 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Etsy is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ETSY's full-year earnings has moved 7.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ETSY has returned 31.3% so far this year. At the same time, Retail-Wholesale stocks have lost an average of 4.4%. This means that Etsy is outperforming the sector as a whole this year.
Another stock in the Retail-Wholesale sector, Urban Outfitters (URBN), has outperformed the sector so far this year. The stock's year-to-date return is 7.4%.
Over the past three months, Urban Outfitters' consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Etsy is a member of the Internet - Commerce industry, which includes 31 individual companies and currently sits at #200 in the Zacks Industry Rank. On average, stocks in this group have lost 1.2% this year, meaning that ETSY 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 #93. The industry has moved -15.6% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Etsy and Urban Outfitters as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).