Yahoo Finance Are Retail-Wholesale Stocks Lagging Costco Wholesale (COST) 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. Costco (COST) 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? 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.
Costco is one of 214 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #12 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 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. Costco is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for COST's full-year earnings has moved 1.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, COST has returned 9.5% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 5.7% on average. This means that Costco is performing better than its sector in terms of year-to-date returns.
Jumia Technologies (JMIA) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.4%.
For Jumia Technologies, the consensus EPS estimate for the current year has increased 49.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Costco belongs to the Retail - Discount Stores industry, a group that includes 9 individual companies and currently sits at #24 in the Zacks Industry Rank. Stocks in this group have gained about 4.8% so far this year, so COST is performing better this group in terms of year-to-date returns.
On the other hand, Jumia Technologies belongs to the Internet - Commerce industry. This 37-stock industry is currently ranked #35. The industry has moved +8.7% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Costco and Jumia Technologies as they could maintain their solid performance.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Jumia Technologies (JMIA) : Free Stock Analysis Report
