For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has K12 (LRN) been one of those stocks this year? 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.
K12 is a member of the Consumer Discretionary sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. K12 is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LRN's full-year earnings has moved 10.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, LRN has moved about 59.8% on a year-to-date basis. Meanwhile, stocks in the Consumer Discretionary group have gained about 11.5% on average. This means that K12 is performing better than its sector in terms of year-to-date returns.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Grand Canyon Education (LOPE). The stock has returned 25.3% year-to-date.
In Grand Canyon Education's case, the consensus EPS estimate for the current year increased 3.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, K12 belongs to the Schools industry, a group that includes 18 individual stocks and currently sits at #18 in the Zacks Industry Rank. On average, this group has gained an average of 9.9% so far this year, meaning that LRN is performing better in terms of year-to-date returns. Grand Canyon Education is also part of the same industry.
K12 and Grand Canyon Education could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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Stride, Inc. (LRN): Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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