The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has K12 (LRN) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
K12 is one of 254 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 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. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for LRN's full-year earnings has moved 13.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, LRN has returned 42% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 9.6% on average. This means that K12 is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Grand Canyon Education (LOPE). The stock is up 30.8% year-to-date.
The consensus estimate for Grand Canyon Education's current year EPS has 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, which includes 18 individual stocks and currently sits at #24 in the Zacks Industry Rank. This group has gained an average of 11.4% so far this year, so LRN is performing better in this area. 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.
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
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).
Zacks Investment Research
