Is ADTALEM GBL EDU (ATGE) Stock Outpacing Its Consumer Discretionary Peers This Year?

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Adtalem Global Education (ATGE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Adtalem Global Education is one of 254 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Adtalem Global Education is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ATGE's full-year earnings has moved 3.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ATGE has returned 29.7% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 10.2% on a year-to-date basis. As we can see, Adtalem Global Education is performing better than its sector in the calendar year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Boyd Gaming (BYD). The stock has returned 12.5% year-to-date.

The consensus estimate for Boyd Gaming's current year EPS has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Adtalem Global Education belongs to the Schools industry, a group that includes 18 individual stocks and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 4.2% so far this year, meaning that ATGE is performing better in terms of year-to-date returns.

Boyd Gaming, however, belongs to the Gaming industry. Currently, this 39-stock industry is ranked #80. The industry has moved +16.2% so far this year.

Adtalem Global Education and Boyd Gaming could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research