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 a member of our Retail-Wholesale group, which includes 187 different companies and currently sits at #10 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. 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 43.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ETSY has returned about 13.9% since the start of the calendar year. At the same time, Retail-Wholesale stocks have gained an average of 7.8%. This means that Etsy is outperforming the sector as a whole this year.
PC Connection (CNXN) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.3%.
In PC Connection's case, the consensus EPS estimate for the current year increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Etsy belongs to the Internet - Commerce industry, which includes 33 individual stocks and currently sits at #146 in the Zacks Industry Rank. On average, this group has gained an average of 8.1% so far this year, meaning that ETSY is performing better in terms of year-to-date returns.
On the other hand, PC Connection belongs to the Retail - Computer Hardware industry. This 1-stock industry is currently ranked #11. The industry has moved +11.3% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Etsy and PC Connection as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).