Investors interested in retail and wholesale stocks should always look for the best performing group companies. Sally Beauty Holdings (SBH) is a stock that can certainly grab the attention of many investors, but are its recent returns cheap compared to the sector as a whole? An easy way to answer this question is to look at the performance of SBH and the rest of the shares in the retail wholesale group since the beginning of the year.
Sally Beauty Holdings is part of the retail wholesale sector. This group comprises 211 individual stocks and currently holds a Zacks sector rank of # 2. The Zacks Sector Rank takes into account 16 different groups and measures the average Zacks Rank of the individual stocks within the sector to assess the strength of each group.
The Zacks Rank puts emphasis on earnings estimates and valuation revisions to find stocks with improved earnings prospects. This system has a long track record and these stocks have a tendency to beat the market over the next one to three months. SBH currently has a Zacks rank of # 1 (Strong Buy).
The Zacks consensus estimate for SBH’s full year results increased 37.05% in the most recent quarter. This means that it will bolster the sentiment of analysts and improve the stock’s earnings outlook.
Based on the latest data, SBH has achieved 57.59% so far this year. In the meantime, the shares of the retail wholesale group have lost an average of around 2.27%. Sally Beauty Holdings outperforms the sector as a whole this year.
More specifically, SBH is a member of the Retail – Other industry, which comprises 19 sole proprietorships and is currently 47th in the Zacks Industry Rank. This group has lost an average of 12.40% so far this year, so that SBH does better in this area.
Investors interested in retail and wholesale stocks should continue to pursue SBH. The stock will try to continue its solid performance.
Would you like the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report
Sally Beauty Holdings, Inc. (SBH): Free Stock Research Report
To read this article on Zacks.com, click here.