The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Stitch Fix (SFIX) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Stitch Fix is a member of our Retail-Wholesale group, which includes 197 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Stitch Fix is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SFIX's full-year earnings has moved 29.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, SFIX has returned 8.8% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 6.7% on average. This means that Stitch Fix is performing better than its sector in terms of year-to-date returns.
Tapestry (TPR) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 76.1%.
The consensus estimate for Tapestry's current year EPS has increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Stitch Fix belongs to the Retail - Apparel and Shoes industry, a group that includes 39 individual stocks and currently sits at #73 in the Zacks Industry Rank. On average, stocks in this group have lost 4.6% this year, meaning that SFIX is performing better in terms of year-to-date returns. Tapestry is also part of the same industry.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Stitch Fix and Tapestry as they could maintain their solid performance.
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Stitch Fix, Inc. (SFIX): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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