Is Portillo's Inc. (PTLO) Outperforming Other Retail-Wholesale Stocks This Year?

Zacks
02-27

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Portillo's Inc. (PTLO) been one of those stocks this year? 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.

Portillo's Inc. is one of 212 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #2 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. Portillo's Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for PTLO's full-year earnings has moved 2.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, PTLO has moved about 48.4% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 6.4%. This shows that Portillo's Inc. is outperforming its peers so far this year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Tapestry (TPR). The stock is up 32.5% year-to-date.

The consensus estimate for Tapestry's current year EPS has increased 7.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Portillo's Inc. is a member of the Retail - Restaurants industry, which includes 39 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have gained 5.5% this year, meaning that PTLO is performing better in terms of year-to-date returns.

Tapestry, however, belongs to the Retail - Apparel and Shoes industry. Currently, this 42-stock industry is ranked #70. The industry has moved -10% so far this year.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Portillo's Inc. and Tapestry as they could maintain their solid performance.

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

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