Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Herbalife Ltd (HLF) one of those stocks right now? 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.
Herbalife Ltd 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 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 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. Herbalife Ltd is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for HLF's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, HLF has gained about 23.9% so far this year. In comparison, Retail-Wholesale companies have returned an average of 6.2%. As we can see, Herbalife Ltd is performing better than its sector in the calendar year.
Another stock in the Retail-Wholesale sector, Potbelly (PBPB), has outperformed the sector so far this year. The stock's year-to-date return is 28%.
For Potbelly, the consensus EPS estimate for the current year has increased 8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Herbalife Ltd is a member of the Retail - Pharmacies and Drug Stores industry, which includes 3 individual companies and currently sits at #1 in the Zacks Industry Rank. On average, this group has gained an average of 22.2% so far this year, meaning that HLF is performing better in terms of year-to-date returns.
On the other hand, Potbelly belongs to the Retail - Restaurants industry. This 39-stock industry is currently ranked #59. The industry has moved +6.4% year to date.
Herbalife Ltd and Potbelly 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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This article originally published on Zacks Investment Research (zacks.com).
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