Is Best Buy (BBY) Outperforming Other Retail-Wholesale Stocks This Year?
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Best Buy (BBY) 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.
Best Buy is one of 212 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #10 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 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. Best Buy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BBY's full-year earnings has moved 2.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BBY has returned about 23.8% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of 21.8% on a year-to-date basis. As we can see, Best Buy is performing better than its sector in the calendar year.
Nordstrom (JWN) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.2%.
Over the past three months, Nordstrom's consensus EPS estimate for the current year has increased 5.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Best Buy belongs to the Retail - Consumer Electronics industry, a group that includes 2 individual stocks and currently sits at #18 in the Zacks Industry Rank. This group has gained an average of 14.8% so far this year, so BBY is performing better in this area.
On the other hand, Nordstrom belongs to the Retail - Apparel and Shoes industry. This 41-stock industry is currently ranked #86. The industry has moved +12.3% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Best Buy and Nordstrom as they attempt to continue their solid performance.
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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report