The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Carvana (CVNA) 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.
Carvana is one of 210 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #13 within 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. Carvana is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CVNA's full-year earnings has moved 34.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CVNA has moved about 16.6% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -3.6%. This means that Carvana is outperforming the sector as a whole this year.
Another stock in the Retail-Wholesale sector, Sprouts Farmers (SFM), has outperformed the sector so far this year. The stock's year-to-date return is 32.2%.
Over the past three months, Sprouts Farmers' consensus EPS estimate for the current year has increased 10.6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Carvana belongs to the Internet - Commerce industry, which includes 37 individual stocks and currently sits at #145 in the Zacks Industry Rank. This group has lost an average of 5.6% so far this year, so CVNA is performing better in this area.
In contrast, Sprouts Farmers falls under the Food - Natural Foods Products industry. Currently, this industry has 6 stocks and is ranked #181. Since the beginning of the year, the industry has moved +12.2%.
Carvana and Sprouts Farmers could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
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Carvana Co. (CVNA): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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