Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. The Home Depot (HD) 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? 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.
The Home Depot is a member of the Retail-Wholesale sector. This group includes 221 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. HD is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for HD’s full-year earnings has moved 2.88% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, HD has gained about 38.91% so far this year. Meanwhile, stocks in the Retail-Wholesale group have lost about 4.05% on average. This means that The Home Depot is performing better than its sector in terms of year-to-date returns.
Looking more specifically, HD belongs to the Building Products – Retail industry, which includes 9 individual stocks and currently sits at #71 in the Zacks Industry Rank. Stocks in this group have gained about 37.30% so far this year, so HD is performing better this group in terms of year-to-date returns.
Investors in the Retail-Wholesale sector will want to keep a close eye on HD as it attempts to continue its solid performance.
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