Are Retail-Wholesale Stocks Lagging Deckers Outdoor (DECK) This Year?

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Deckers (DECK) 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.

Deckers is one of 195 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Deckers is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DECK's full-year earnings has moved 7.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, DECK has moved about 0.6% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 1%. This means that Deckers is performing better than its sector in terms of year-to-date returns.

Another stock in the Retail-Wholesale sector, Ross Stores (ROST), has outperformed the sector so far this year. The stock's year-to-date return is 17.6%.

For Ross Stores, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Deckers belongs to the Retail - Apparel and Shoes industry, a group that includes 39 individual stocks and currently sits at #40 in the Zacks Industry Rank. Stocks in this group have lost about 5% so far this year, so DECK is performing better this group in terms of year-to-date returns.

On the other hand, Ross Stores belongs to the Retail - Discount Stores industry. This 7-stock industry is currently ranked #71. The industry has moved +12.4% year to date.

Deckers and Ross Stores could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Deckers Outdoor Corporation (DECK): Free Stock Analysis Report

Ross Stores, Inc. (ROST): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research