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Are Retail-Wholesale Stocks Lagging American Eagle Outfitters (AEO) This Year?

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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has American Eagle Outfitters (AEO - Free Report) been one of those stocks this year? 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.

American Eagle Outfitters is one of 220 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #3 in 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. American Eagle Outfitters is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AEO's full-year earnings has moved 1.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AEO has returned about 17.5% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of 16% on a year-to-date basis. This shows that American Eagle Outfitters is outperforming its peers so far this year.

Another stock in the Retail-Wholesale sector, Industria de Diseno Textil SA (IDEXY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 41.5%.

Over the past three months, Industria de Diseno Textil SA's consensus EPS estimate for the current year has increased 15.6%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, American Eagle Outfitters belongs to the Retail - Apparel and Shoes industry, a group that includes 43 individual companies and currently sits at #108 in the Zacks Industry Rank. This group has lost an average of 2% so far this year, so AEO is performing better in this area. Industria de Diseno Textil SA is also part of the same industry.

American Eagle Outfitters and Industria de Diseno Textil SA could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.


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