Is a.k.a. Brands Holding Corp. (AKA) Stock Outpacing Its Retail-Wholesale Peers 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. a.k.a. Brands (AKA) 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? Let's take a closer look at the stock's year-to-date performance to find out.
a.k.a. Brands is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. 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 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. a.k.a. Brands is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AKA's full-year earnings has moved 29.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AKA has gained about 173.3% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 12.6%. As we can see, a.k.a. Brands is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Zumiez (ZUMZ). The stock has returned 37.9% year-to-date.
Over the past three months, Zumiez's consensus EPS estimate for the current year has increased 75.9%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, a.k.a. Brands is a member of the Retail - Apparel and Shoes industry, which includes 40 individual companies and currently sits at #149 in the Zacks Industry Rank. On average, this group has gained an average of 8.9% so far this year, meaning that AKA is performing better in terms of year-to-date returns. Zumiez is also part of the same industry.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to a.k.a. Brands and Zumiez as they could maintain their solid performance.
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