The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Designer Brands (DBI) 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.
Designer Brands 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 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. Designer Brands is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DBI's full-year earnings has moved 6.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DBI has gained about 13.5% so far this year. In comparison, Retail-Wholesale companies have returned an average of -23%. This shows that Designer Brands is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Pinduoduo Inc. Sponsored ADR (PDD), has outperformed the sector so far this year. The stock's year-to-date return is 13.4%.
For Pinduoduo Inc. Sponsored ADR, the consensus EPS estimate for the current year has increased 80.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Designer Brands belongs to the Retail - Apparel and Shoes industry, a group that includes 42 individual companies and currently sits at #214 in the Zacks Industry Rank. This group has lost an average of 43.6% so far this year, so DBI is performing better in this area.
In contrast, Pinduoduo Inc. Sponsored ADR falls under the Internet - Commerce industry. Currently, this industry has 43 stocks and is ranked #160. Since the beginning of the year, the industry has moved -28.6%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Designer Brands and Pinduoduo Inc. Sponsored ADR as they attempt to continue their solid performance.
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