The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. American Eagle Outfitters (AEO) 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? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
American Eagle Outfitters is one of 196 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #7 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Eagle Outfitters is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AEO's full-year earnings has moved 22.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that AEO has returned about 67% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of 6.5%. This means that American Eagle Outfitters is outperforming the sector as a whole this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Next PLC (NXGPY). The stock is up 40.1% year-to-date.
The consensus estimate for Next PLC's current year EPS has increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, American Eagle Outfitters belongs to the Retail - Apparel and Shoes industry, a group that includes 39 individual companies and currently sits at #60 in the Zacks Industry Rank. On average, stocks in this group have gained 0.7% this year, meaning that AEO is performing better in terms of year-to-date returns. Next PLC is also part of the same industry.
Investors with an interest in Retail-Wholesale stocks should continue to track American Eagle Outfitters and Next PLC. These stocks will be looking to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Next PLC (NXGPY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
