Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Designer Brands (DBI) 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.
Designer Brands is one of 227 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. 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 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. Designer Brands is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DBI's full-year earnings has moved 6.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, DBI has moved about 13.2% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 24.3%. This means that Designer Brands is performing better than its sector in terms of year-to-date returns.
Another stock in the Retail-Wholesale sector, Pinduoduo Inc. Sponsored ADR (PDD), has outperformed the sector so far this year. The stock's year-to-date return is 11.9%.
Over the past three months, Pinduoduo Inc. Sponsored ADR's consensus EPS estimate for the current year has increased 80.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Designer Brands belongs to the Retail - Apparel and Shoes industry, which includes 44 individual stocks and currently sits at #213 in the Zacks Industry Rank. This group has lost an average of 45% so far this year, so DBI is performing better in this area.
On the other hand, Pinduoduo Inc. Sponsored ADR belongs to the Internet - Commerce industry. This 43-stock industry is currently ranked #61. The industry has moved -30.1% year to date.
Investors with an interest in Retail-Wholesale stocks should continue to track Designer Brands and Pinduoduo Inc. Sponsored ADR. These stocks will be looking to continue their solid performance.
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