Has CVS Health (CVS) Outpaced Other Retail-Wholesale Stocks This Year?
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. CVS Health (CVS) 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? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
CVS Health is a member of our Retail-Wholesale group, which includes 229 different companies and currently sits at #13 in the Zacks Sector Rank. 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 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. CVS Health is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CVS' full-year earnings has moved 2.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CVS has returned 0.5% so far this year. At the same time, Retail-Wholesale stocks have lost an average of 18.3%. As we can see, CVS Health 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 Dollar Tree (DLTR). The stock is up 20.2% year-to-date.
In Dollar Tree's case, the consensus EPS estimate for the current year increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, CVS Health belongs to the Retail - Pharmacies and Drug Stores industry, a group that includes 4 individual companies and currently sits at #60 in the Zacks Industry Rank. This group has lost an average of 5.1% so far this year, so CVS is performing better in this area.
On the other hand, Dollar Tree belongs to the Retail - Discount Stores industry. This 8-stock industry is currently ranked #99. The industry has moved -10.9% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to CVS Health and Dollar Tree as they could maintain their solid performance.
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