For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Restoration Hardware Holdings (RH - Free Report) one of those stocks right now? 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.
Restoration Hardware Holdings is one of 224 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #3 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. RH is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for RH's full-year earnings has moved 15.72% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, RH has returned 52.08% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 21.15%. As we can see, Restoration Hardware Holdings is performing better than its sector in the calendar year.
Looking more specifically, RH belongs to the Retail - Home Furnishings industry, a group that includes 9 individual stocks and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 32.16% so far this year, so RH is performing better this group 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.