Has H World Group Limited Sponsored ADR (HTHT) Outpaced Other Consumer Discretionary Stocks 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. Has H World Group (HTHT) 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.

H World Group is one of 265 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. H World Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for HTHT's full-year earnings has moved 9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, HTHT has returned 24.3% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 1.8%. This means that H World Group is outperforming the sector as a whole this year.

Topgolf Callaway Brands (MODG) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 34.9%.

Over the past three months, Topgolf Callaway Brands' consensus EPS estimate for the current year has increased 13.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, H World Group belongs to the Hotels and Motels industry, a group that includes 16 individual companies and currently sits at #185 in the Zacks Industry Rank. On average, stocks in this group have lost 8.6% this year, meaning that HTHT is performing better in terms of year-to-date returns.

Topgolf Callaway Brands, however, belongs to the Leisure and Recreation Products industry. Currently, this 24-stock industry is ranked #76. The industry has moved -5.6% so far this year.

H World Group and Topgolf Callaway Brands 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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This article originally published on Zacks Investment Research (zacks.com).

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