Has Dollar Tree (DLTR) Outpaced 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. Is Dollar Tree (DLTR) one of those stocks right now? 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.
Dollar Tree is one of 232 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dollar Tree is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DLTR's full-year earnings has moved 8.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DLTR has returned about 18.9% since the start of the calendar year. At the same time, Retail-Wholesale stocks have lost an average of 13.8%. This shows that Dollar Tree is outperforming its peers so far this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Genesco (GCO). The stock has returned 0.8% year-to-date.
Over the past three months, Genesco's consensus EPS estimate for the current year has increased 5.9%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Dollar Tree belongs to the Retail - Discount Stores industry, a group that includes 8 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have lost 2.3% this year, meaning that DLTR is performing better in terms of year-to-date returns.
On the other hand, Genesco belongs to the Retail - Apparel and Shoes industry. This 43-stock industry is currently ranked #94. The industry has moved -30.2% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dollar Tree and Genesco as they attempt to continue their solid performance.
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