Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Groupon (GRPN) 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? 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.
Groupon is a member of our Retail-Wholesale group, which includes 201 different companies and currently sits at #11 in the Zacks Sector Rank. 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. Groupon is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for GRPN's full-year earnings has moved 136% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, GRPN has gained about 83.4% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 10.8% on a year-to-date basis. This shows that Groupon is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Potbelly (PBPB), has outperformed the sector so far this year. The stock's year-to-date return is 80.5%.
In Potbelly's case, the consensus EPS estimate for the current year increased 13% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Groupon belongs to the Internet - Commerce industry, a group that includes 36 individual companies and currently sits at #93 in the Zacks Industry Rank. On average, stocks in this group have gained 15.4% this year, meaning that GRPN is performing better in terms of year-to-date returns.
On the other hand, Potbelly belongs to the Retail - Restaurants industry. This 39-stock industry is currently ranked #185. The industry has moved -6.9% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Groupon and Potbelly as they attempt to continue their solid performance.
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Groupon, Inc. (GRPN): Free Stock Analysis Report Potbelly Corporation (PBPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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