IInvestors interested in retail-wholesale stocks should always seek out the best performing companies in the group. Was Genesco (GCO) one of these actions this year? Let’s take a closer look at the stock’s performance since the start of the year to find out.
Genesco is one of the 220 companies of the Retail-Wholesale group. The Retail-Wholesale group is currently in 4th place in the ranking of the Zacks sector. Zacks’ industry ranking considers 16 different industry groups. The average Zacks rank of individual stocks within groups is measured and sectors are ranked from best to worst.
Zacks Rank is an effective stock picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could outperform the overall market over the next one to three months. Genesco currently has a Zacks # 1 ranking (strong buy).
Zacks’ consensus estimate for GCO’s annual profit rose 16.5% in the last quarter. This is a sign of improving sentiment among analysts and a positive trend in the earnings outlook.
Our latest available data shows GCO has returned around 105.1% year-to-date. In comparison, retail-wholesale companies reported an average of -8%. This means that Genesco is outperforming the entire industry this year.
Another retail and wholesale stock, Lithia Motors (LAD), has outperformed the sector so far this year. The stock has returned 0.7% year-to-date.
For Lithia Motors, the consensus estimate of EPS for the current year has risen 9% in the past three months. The stock currently has a Zacks Rank # 2 (Buy).
Looking more closely, Genesco is part of the Retail – Apparel and Footwear sector, a group that includes 39 individual stocks and currently sits at No. 50 in the Zacks industry rankings. On average, shares in this group have lost 9.3% this year, which means GCO performs better in terms of annual return.
Lithia Motors, however, belongs to the Automotive – Retail and Wholesale segment. Currently, this 9-stock industry is ranked 16th. The industry has grown by + 34.7% so far this year.
Going forward, investors interested in retail and wholesale stocks should continue to pay close attention to Genesco and Lithia Motors as they could maintain their strong performance.
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Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
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