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Is McDonald's (MCD) 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 McDonald's (MCD - Free Report) one of those stocks right now? 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.

McDonald's is one of 226 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #13 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 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. McDonald's is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MCD's full-year earnings has moved 1.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, MCD has moved about 2.8% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of -20.6% on a year-to-date basis. This means that McDonald's is outperforming the sector as a whole this year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Wayfair (W - Free Report) . The stock has returned 78.4% year-to-date.

Over the past three months, Wayfair's consensus EPS estimate for the current year has increased 7.9%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, McDonald's belongs to the Retail - Restaurants industry, a group that includes 41 individual companies and currently sits at #152 in the Zacks Industry Rank. This group has lost an average of 2.7% so far this year, so MCD is performing better in this area.

Wayfair, however, belongs to the Internet - Commerce industry. Currently, this 42-stock industry is ranked #40. The industry has moved -31.7% so far this year.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on McDonald's and Wayfair as they attempt to continue their solid performance.


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