Back to top

Image: Bigstock

Is The Cheesecake Factory (CAKE) Outperforming Other Retail-Wholesale Stocks This Year?

Read MoreHide Full Article

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Has Cheesecake Factory (CAKE - 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.

Cheesecake Factory is one of 202 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #12 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 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. Cheesecake Factory is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CAKE's full-year earnings has moved 2.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CAKE has moved about 30.9% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 8.6%. This means that Cheesecake Factory is performing better than its sector in terms of year-to-date returns.

Dillard's (DDS - 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 20.3%.

The consensus estimate for Dillard's' current year EPS has increased 4.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Cheesecake Factory belongs to the Retail - Restaurants industry, a group that includes 39 individual companies and currently sits at #200 in the Zacks Industry Rank. This group has lost an average of 2.6% so far this year, so CAKE is performing better in this area.

Dillard's, however, belongs to the Retail - Regional Department Stores industry. Currently, this 3-stock industry is ranked #34. The industry has moved +1% so far this year.

Investors with an interest in Retail-Wholesale stocks should continue to track Cheesecake Factory and Dillard's. 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:


Dillard's, Inc. (DDS) - free report >>

The Cheesecake Factory Incorporated (CAKE) - free report >>

Published in