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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. MercadoLibre (MELI) 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.
MercadoLibre is a member of the Retail-Wholesale sector. This group includes 210 individual stocks and currently holds a Zacks Sector Rank of #8. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. MercadoLibre is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for MELI's full-year earnings has moved 11.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that MELI has returned about 33% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of 23.8%. This means that MercadoLibre is outperforming the sector as a whole this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Itochu Corp. (ITOCY). The stock has returned 27% year-to-date.
The consensus estimate for Itochu Corp.'s current year EPS has increased 8.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, MercadoLibre belongs to the Internet - Commerce industry, a group that includes 39 individual stocks and currently sits at #66 in the Zacks Industry Rank. On average, this group has gained an average of 32.2% so far this year, meaning that MELI is performing better in terms of year-to-date returns.
On the other hand, Itochu Corp. belongs to the Retail - Miscellaneous industry. This 17-stock industry is currently ranked #78. The industry has moved -5.3% year to date.
Investors with an interest in Retail-Wholesale stocks should continue to track MercadoLibre and Itochu Corp. These stocks will be looking to continue their solid performance.
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