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 Tesco PLC (TSCDY) 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.
Tesco PLC is one of 195 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #11 within 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. Tesco PLC is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for TSCDY's full-year earnings has moved 5.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that TSCDY has returned about 31.9% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have gained about 7.7% on average. This means that Tesco PLC is outperforming the sector as a whole this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Ermenegildo Zegna N.V. (ZGN). The stock is up 26.9% year-to-date.
For Ermenegildo Zegna N.V., the consensus EPS estimate for the current year has increased 15.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Tesco PLC belongs to the Retail - Supermarkets industry, which includes 9 individual stocks and currently sits at #76 in the Zacks Industry Rank. Stocks in this group have gained about 15.6% so far this year, so TSCDY is performing better this group in terms of year-to-date returns.
On the other hand, Ermenegildo Zegna N.V. belongs to the Retail - Apparel and Shoes industry. This 38-stock industry is currently ranked #36. The industry has moved -10.6% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Tesco PLC and Ermenegildo Zegna N.V. as they could maintain their solid performance.
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Tesco PLC (TSCDY): Free Stock Analysis Report Ermenegildo Zegna N.V. (ZGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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