Is PC Connection (CNXN) Outperforming Other Retail-Wholesale Stocks This Year?
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PC Connection (CNXN) 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.
PC Connection is one of 232 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. PC Connection is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CNXN's full-year earnings has moved 5.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CNXN has returned 16.8% so far this year. In comparison, Retail-Wholesale companies have returned an average of -5.1%. As we can see, PC Connection is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dick's Sporting Goods (DKS). The stock has returned 1.9% year-to-date.
In Dick's Sporting Goods' case, the consensus EPS estimate for the current year increased 19.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, PC Connection belongs to the Retail - Computer Hardware industry, a group that includes 1 individual stocks and currently sits at #1 in the Zacks Industry Rank. On average, this group has gained an average of 16.8% so far this year, meaning that CNXN is performing on par in terms of year-to-date returns.
Dick's Sporting Goods, however, belongs to the Retail - Miscellaneous industry. Currently, this 24-stock industry is ranked #70. The industry has moved -7.8% so far this year.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on PC Connection and Dick's Sporting Goods as they attempt to continue their solid performance.
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