For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Shake Shack (SHAK) 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.
Shake Shack is one of 212 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #9 in 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 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. Shake Shack is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SHAK's full-year earnings has moved 12.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, SHAK has returned 80% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 32.3% on average. As we can see, Shake Shack is performing better than its sector in the calendar year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Tapestry (TPR). The stock is up 73.4% year-to-date.
In Tapestry's case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Shake Shack belongs to the Retail - Restaurants industry, a group that includes 42 individual stocks and currently sits at #128 in the Zacks Industry Rank. On average, stocks in this group have gained 10.2% this year, meaning that SHAK is performing better in terms of year-to-date returns.
Tapestry, however, belongs to the Retail - Apparel and Shoes industry. Currently, this 40-stock industry is ranked #77. The industry has moved +32.4% so far this year.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Shake Shack and Tapestry as they could maintain their solid performance.
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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
