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Is BuildABear Workshop (BBW) 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. Build-A-Bear (BBW - 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.

Build-A-Bear is one of 201 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #11 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. Build-A-Bear is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for BBW's full-year earnings has moved 5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, BBW has moved about 60.7% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 9.7% on average. This means that Build-A-Bear is performing better than its sector in terms of year-to-date returns.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Cheesecake Factory (CAKE - Free Report) . The stock has returned 19.2% year-to-date.

For Cheesecake Factory, the consensus EPS estimate for the current year has increased 2.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Build-A-Bear belongs to the Retail - Miscellaneous industry, a group that includes 17 individual companies and currently sits at #28 in the Zacks Industry Rank. This group has gained an average of 8.8% so far this year, so BBW is performing better in this area.

Cheesecake Factory, however, belongs to the Retail - Restaurants industry. Currently, this 39-stock industry is ranked #175. The industry has moved -6.8% so far this year.

Investors with an interest in Retail-Wholesale stocks should continue to track Build-A-Bear and Cheesecake Factory. These stocks will be looking to continue their solid performance.


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

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