The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Netflix (NFLX) 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.
Netflix is a member of the Consumer Discretionary sector. This group includes 253 individual stocks and currently holds a Zacks Sector Rank of #9. 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Netflix is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for NFLX's full-year earnings has moved 2.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, NFLX has moved about 36.2% on a year-to-date basis. At the same time, Consumer Discretionary stocks have gained an average of 9.3%. As we can see, Netflix is performing better than its sector in the calendar year.
Another stock in the Consumer Discretionary sector, Soho House & Co (SHCO), has outperformed the sector so far this year. The stock's year-to-date return is 18%.
Over the past three months, Soho House & Co's consensus EPS estimate for the current year has increased 278.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Netflix belongs to the Broadcast Radio and Television industry, a group that includes 18 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 27.6% this year, meaning that NFLX is performing better in terms of year-to-date returns.
On the other hand, Soho House & Co belongs to the Hotels and Motels industry. This 14-stock industry is currently ranked #201. The industry has moved -13.6% year to date.
Investors with an interest in Consumer Discretionary stocks should continue to track Netflix and Soho House & Co. These stocks will be looking to continue their solid performance.
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Netflix, Inc. (NFLX): Free Stock Analysis Report Soho House & Co Inc. (SHCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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