For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Dollar General (DG) been one of those stocks this year? 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.
Dollar General is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Dollar General is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DG's full-year earnings has moved 2.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DG has gained about 47% so far this year. In comparison, Retail-Wholesale companies have returned an average of 1.4%. This means that Dollar General is performing better than its sector in terms of year-to-date returns.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is MONOTARO (MONOY). The stock has returned 18.3% year-to-date.
The consensus estimate for MONOTARO's current year EPS has increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Dollar General is a member of the Retail - Discount Stores industry, which includes 8 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 4.1% this year, meaning that DG is performing better in terms of year-to-date returns.
On the other hand, MONOTARO belongs to the Internet - Commerce industry. This 38-stock industry is currently ranked #74. The industry has moved +4.3% year to date.
Dollar General and MONOTARO 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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Dollar General Corporation (DG): Free Stock Analysis Report MONOTARO (MONOY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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