For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Restoration Hardware Holdings (RH - 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? One simple way to answer this question is to take a look at the year-to-date performance of RH and the rest of the Retail-Wholesale group's stocks.
Restoration Hardware Holdings is a member of the Retail-Wholesale sector. This group includes 218 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. RH is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for RH's full-year earnings has moved 4.46% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, RH has gained about 9.39% so far this year. In comparison, Retail-Wholesale companies have returned an average of 13.70%. This means that Restoration Hardware Holdings is outperforming the sector as a whole this year.
Breaking things down more, RH is a member of the Retail - Home Furnishings industry, which includes 9 individual companies and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 17.18% so far this year, meaning that RH is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Retail-Wholesale sector will want to keep a close eye on RH as it attempts to continue its solid performance.