Are Retail-Wholesale Stocks Lagging The Cheesecake Factory (CAKE) This Year?

Zacks
04 Feb

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Cheesecake Factory (CAKE) 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.

Cheesecake Factory is a member of the Retail-Wholesale sector. This group includes 212 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cheesecake Factory is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CAKE's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CAKE has returned 19.5% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 7.4%. This means that Cheesecake Factory is performing better than its sector in terms of year-to-date returns.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Costco (COST). The stock is up 9.8% year-to-date.

For Costco, the consensus EPS estimate for the current year has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cheesecake Factory belongs to the Retail - Restaurants industry, a group that includes 39 individual stocks and currently sits at #34 in the Zacks Industry Rank. This group has gained an average of 4% so far this year, so CAKE is performing better in this area.

Costco, however, belongs to the Retail - Discount Stores industry. Currently, this 9-stock industry is ranked #90. The industry has moved +5.6% so far this year.

Investors with an interest in Retail-Wholesale stocks should continue to track Cheesecake Factory and Costco. These stocks will be looking to continue their solid performance.

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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

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