The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Group 1 Automotive (GPI) 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.
Group 1 Automotive is one of 220 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #3 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. Group 1 Automotive is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for GPI's full-year earnings has moved 7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, GPI has gained about 42.9% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 14.7% on a year-to-date basis. This means that Group 1 Automotive is outperforming the sector as a whole this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Hennes & Mauritz AB (HNNMY). The stock has returned 32.9% year-to-date.
In Hennes & Mauritz AB's case, the consensus EPS estimate for the current year increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Group 1 Automotive belongs to the Automotive - Retail and Whole Sales industry, a group that includes 9 individual companies and currently sits at #47 in the Zacks Industry Rank. Stocks in this group have gained about 34.4% so far this year, so GPI is performing better this group in terms of year-to-date returns.
On the other hand, Hennes & Mauritz AB belongs to the Retail - Apparel and Shoes industry. This 43-stock industry is currently ranked #85. The industry has moved -2.8% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Group 1 Automotive and Hennes & Mauritz AB as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report