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Is Sonic Automotive (SAH) 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. Sonic Automotive (SAH - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Sonic Automotive is a member of the Retail-Wholesale sector. This group includes 204 individual stocks and currently holds a Zacks Sector Rank of #11. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Sonic Automotive is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SAH's full-year earnings has moved 2.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, SAH has returned 21.8% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 5.8% on a year-to-date basis. This shows that Sonic Automotive is outperforming its peers so far this year.

Stitch Fix (SFIX - 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 14.4%.

The consensus estimate for Stitch Fix's current year EPS has increased 20% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Sonic Automotive belongs to the Automotive - Retail and Whole Sales industry, a group that includes 10 individual companies and currently sits at #163 in the Zacks Industry Rank. This group has gained an average of 0.3% so far this year, so SAH is performing better in this area.

On the other hand, Stitch Fix belongs to the Retail - Apparel and Shoes industry. This 40-stock industry is currently ranked #194. The industry has moved -9.4% year to date.

Investors with an interest in Retail-Wholesale stocks should continue to track Sonic Automotive and Stitch Fix. These stocks will be looking to continue their solid performance.


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