Are Consumer Discretionary Stocks Lagging Carnival (CCL) This Year?

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Carnival (CCL) 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.

Carnival is one of 253 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Carnival is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CCL's full-year earnings has moved 7.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CCL has gained about 25.4% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 11.5% on a year-to-date basis. This means that Carnival is performing better than its sector in terms of year-to-date returns.

Tencent Music Entertainment Group Sponsored ADR (TME) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 126.6%.

Over the past three months, Tencent Music Entertainment Group Sponsored ADR's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Carnival belongs to the Leisure and Recreation Services industry, a group that includes 29 individual companies and currently sits at #176 in the Zacks Industry Rank. On average, this group has gained an average of 10.5% so far this year, meaning that CCL is performing better in terms of year-to-date returns.

Tencent Music Entertainment Group Sponsored ADR, however, belongs to the Media Conglomerates industry. Currently, this 16-stock industry is ranked #165. The industry has moved +12.1% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track Carnival and Tencent Music Entertainment Group Sponsored ADR. These stocks will be looking to continue their solid performance.

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