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Is Costco Wholesale (COST) Stock Outpacing Its Retail-Wholesale Peers This Year?

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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Costco (COST - Free Report) one of those stocks right now? 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.

Costco is a member of our Retail-Wholesale group, which includes 221 different companies and currently sits at #7 in 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 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. Costco is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for COST's full-year earnings has moved 2.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, COST has moved about 26.7% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 18.1% on average. As we can see, Costco is performing better than its sector in the calendar year.

Shake Shack (SHAK - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 45.7%.

The consensus estimate for Shake Shack's current year EPS has increased 29.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Costco belongs to the Retail - Discount Stores industry, which includes 8 individual stocks and currently sits at #65 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so COST is performing better in this area.

Shake Shack, however, belongs to the Retail - Restaurants industry. Currently, this 42-stock industry is ranked #65. The industry has moved +8.2% so far this year.

Costco and Shake Shack could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.


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