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Has Groupon (GRPN) Outpaced Other Retail-Wholesale Stocks 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. Groupon (GRPN - 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.

Groupon is a member of the Retail-Wholesale sector. This group includes 201 individual stocks and currently holds a Zacks Sector Rank of #12. 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. Groupon is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for GRPN's full-year earnings has moved 80% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, GRPN has returned 114.8% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 10.4% on a year-to-date basis. This means that Groupon is performing better than its sector in terms of year-to-date returns.

One other Retail-Wholesale stock that has outperformed the sector so far this year is GMS (GMS - Free Report) . The stock is up 29.6% year-to-date.

In GMS' case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Groupon is a member of the Internet - Commerce industry, which includes 36 individual companies and currently sits at #99 in the Zacks Industry Rank. Stocks in this group have gained about 13.5% so far this year, so GRPN is performing better this group in terms of year-to-date returns.

In contrast, GMS falls under the Building Products - Retail industry. Currently, this industry has 4 stocks and is ranked #212. Since the beginning of the year, the industry has moved -0.3%.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Groupon and GMS as they attempt to continue their solid performance.


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