Is The Cheesecake Factory Stock Outpacing Its Retail-Wholesale Peers This Year?

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cheesecake Factory CAKE been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Cheesecake Factory is one of 210 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 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. Cheesecake Factory is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CAKE's full-year earnings has moved 3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CAKE has returned about 13.8% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have gained about 13.7% on average. This shows that Cheesecake Factory is outperforming its peers so far this year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Torrid Holdings CURV. The stock has returned 49.1% year-to-date.

For Torrid Holdings, the consensus EPS estimate for the current year has increased 6.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cheesecake Factory is a member of the Retail - Restaurants industry, which includes 43 individual companies and currently sits at #167 in the Zacks Industry Rank. On average, stocks in this group have lost 6.7% this year, meaning that CAKE is performing better in terms of year-to-date returns.

On the other hand, Torrid Holdings belongs to the Retail - Apparel and Shoes industry. This 41-stock industry is currently ranked #148. The industry has moved +8.8% year to date.

Cheesecake Factory and Torrid Holdings could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

To read this article on Zacks.com click here.