Is Farmer Brothers (FARM) 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. Is Farmer Brothers (FARM) one of those stocks right now? 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.
Farmer Brothers is one of 218 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #10 within 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. Farmer Brothers is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FARM's full-year earnings has moved 9.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, FARM has moved about 12.7% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of 9.7% on a year-to-date basis. This means that Farmer Brothers is outperforming the sector as a whole this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Kroger (KR). The stock is up 23.4% year-to-date.
The consensus estimate for Kroger's current year EPS has increased 1.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Farmer Brothers is a member of the Food - Natural Foods Products industry, which includes 6 individual companies and currently sits at #12 in the Zacks Industry Rank. On average, stocks in this group have gained 14.7% this year, meaning that FARM is slightly underperforming its industry in terms of year-to-date returns.
Kroger, however, belongs to the Retail - Supermarkets industry. Currently, this 9-stock industry is ranked #50. The industry has moved +15.6% so far this year.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Farmer Brothers and Kroger as they attempt to continue their solid performance.
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Farmer Brothers Company (FARM) : Free Stock Analysis Report
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