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Is PC Connection (CNXN) Stock Outpacing Its Retail-Wholesale Peers This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has PC Connection (CNXN - Free Report) been one of those stocks this year? 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 a member of the Retail-Wholesale sector. This group includes 230 individual stocks and currently holds a Zacks Sector Rank of #14. 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. PC Connection is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CNXN's full-year earnings has moved 10.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CNXN has returned 8.5% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -24.6% on a year-to-date basis. This means that PC Connection is performing better than its sector in terms of year-to-date returns.

Kroger (KR - 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 1.7%.

The consensus estimate for Kroger's current year EPS has increased 4.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, PC Connection is a member of the Retail - Computer Hardware industry, which includes 1 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 8.5% so far this year, meaning that CNXN is performing on par in terms of year-to-date returns.

Kroger, however, belongs to the Retail - Supermarkets industry. Currently, this 9-stock industry is ranked #235. The industry has moved -13.2% so far this year.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to PC Connection and Kroger as they could maintain their solid performance.


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