Is Best Buy Co. (BBY) Stock Outpacing Its Retail-Wholesale Peers This Year?
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Best Buy Co. (BBY) 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.
Best Buy Co. is a member of the Retail-Wholesale sector. This group includes 218 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. BBY is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BBY's full-year earnings has moved 2.71% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, BBY has moved about 33.12% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 14.34%. This means that Best Buy Co. is outperforming the sector as a whole this year.
Breaking things down more, BBY is a member of the Retail - Consumer Electronics industry, which includes 5 individual companies and currently sits at #222 in the Zacks Industry Rank. On average, this group has gained an average of 26.93% so far this year, meaning that BBY is performing better in terms of year-to-date returns.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to BBY as it looks to continue its solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.