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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Brinker International (EAT) 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.
Brinker International is a member of our Retail-Wholesale group, which includes 208 different companies and currently sits at #10 in the Zacks Sector Rank. 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 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. Brinker International is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for EAT's full-year earnings has moved 5.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, EAT has returned 14.6% so far this year. In comparison, Retail-Wholesale companies have returned an average of 3%. This means that Brinker International is outperforming the sector as a whole this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is SharkNinja, Inc. (SN). The stock has returned 4.9% year-to-date.
Over the past three months, SharkNinja, Inc.'s consensus EPS estimate for the current year has increased 2.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Brinker International belongs to the Retail - Restaurants industry, which includes 39 individual stocks and currently sits at #192 in the Zacks Industry Rank. On average, stocks in this group have gained 2.1% this year, meaning that EAT is performing better in terms of year-to-date returns.
On the other hand, SharkNinja, Inc. belongs to the Retail - Miscellaneous industry. This 17-stock industry is currently ranked #43. The industry has moved -6.6% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Brinker International and SharkNinja, Inc. as they could maintain their solid performance.