Is BuildABear Workshop (BBW) Stock Outpacing Its Retail-Wholesale Peers This Year?
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Build-A-Bear (BBW) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Build-A-Bear is a member of the Retail-Wholesale sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Build-A-Bear is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BBW's full-year earnings has moved 1.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, BBW has gained about 0.8% so far this year. In comparison, Retail-Wholesale companies have returned an average of -10.1%. This shows that Build-A-Bear is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Costco (COST), has outperformed the sector so far this year. The stock's year-to-date return is 6.3%.
The consensus estimate for Costco's current year EPS has increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Build-A-Bear belongs to the Retail - Miscellaneous industry, which includes 23 individual stocks and currently sits at #92 in the Zacks Industry Rank. On average, this group has lost an average of 7% so far this year, meaning that BBW is performing better in terms of year-to-date returns.
In contrast, Costco falls under the Retail - Discount Stores industry. Currently, this industry has 8 stocks and is ranked #66. Since the beginning of the year, the industry has moved +3.6%.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Build-A-Bear and Costco as they could maintain their solid performance.
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