Are Retail-Wholesale Stocks Lagging Chewy (CHWY) This Year?

Zacks
04-14

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Chewy (CHWY) one of those stocks right now? 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.

Chewy is one of 210 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 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 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. Chewy is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CHWY's full-year earnings has moved 0.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, CHWY has moved about 3.5% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -6.4%. As we can see, Chewy is performing better than its sector in the calendar year.

Another stock in the Retail-Wholesale sector, MONOTARO (MONOY), has outperformed the sector so far this year. The stock's year-to-date return is 14.9%.

In MONOTARO's case, the consensus EPS estimate for the current year increased 5.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Chewy belongs to the Internet - Commerce industry, which includes 37 individual stocks and currently sits at #64 in the Zacks Industry Rank. On average, this group has lost an average of 9.9% so far this year, meaning that CHWY is performing better in terms of year-to-date returns. MONOTARO is also part of the same industry.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Chewy and MONOTARO as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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