Back to top

Image: Bigstock

Is Amazon.com (AMZN) Outperforming Other Retail-Wholesale Stocks This Year?

Read MoreHide Full Article

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Amazon (AMZN - Free Report) 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.

Amazon is a member of our Retail-Wholesale group, which includes 220 different companies and currently sits at #3 in 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 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. Amazon is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AMZN's full-year earnings has moved 42.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that AMZN has returned about 58.6% since the start of the calendar year. At the same time, Retail-Wholesale stocks have gained an average of 15.4%. This shows that Amazon is outperforming its peers so far this year.

Arcos Dorados (ARCO - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.6%.

The consensus estimate for Arcos Dorados' current year EPS has increased 7.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Amazon belongs to the Internet - Commerce industry, a group that includes 41 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 36.3% this year, meaning that AMZN is performing better in terms of year-to-date returns.

In contrast, Arcos Dorados falls under the Retail - Restaurants industry. Currently, this industry has 41 stocks and is ranked #47. Since the beginning of the year, the industry has moved +5.7%.

Investors with an interest in Retail-Wholesale stocks should continue to track Amazon and Arcos Dorados. These stocks will be looking to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Arcos Dorados Holdings Inc. (ARCO) - free report >>

Published in