The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bloomin' Brands (BLMN) 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.
Bloomin' Brands is one of 221 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #7 within 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. Bloomin' Brands is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BLMN's full-year earnings has moved 7.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BLMN has returned about 24.9% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have gained about 8.3% on average. This shows that Bloomin' Brands is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Darden Restaurants (DRI), has outperformed the sector so far this year. The stock's year-to-date return is 10.7%.
In Darden Restaurants' case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bloomin' Brands belongs to the Retail - Restaurants industry, a group that includes 40 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 8.5% so far this year, meaning that BLMN is performing better in terms of year-to-date returns. Darden Restaurants is also part of the same industry.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Bloomin' Brands and Darden Restaurants as they could maintain their solid performance.
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