Is Fox (FOX) Stock Outpacing Its Consumer Discretionary Peers This Year?

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Fox Corporation (FOX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.

Fox Corporation is a member of our Consumer Discretionary group, which includes 265 different companies and currently sits at #13 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 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. Fox Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for FOX's full-year earnings has moved 10.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that FOX has returned about 27.4% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 15.3% on average. This means that Fox Corporation 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 Tencent Music Entertainment Group Sponsored ADR (TME). The stock has returned 65% year-to-date.

For Tencent Music Entertainment Group Sponsored ADR, the consensus EPS estimate for the current year has increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fox Corporation belongs to the Broadcast Radio and Television industry, a group that includes 19 individual stocks and currently sits at #151 in the Zacks Industry Rank. This group has lost an average of 59.7% so far this year, so FOX is performing better in this area.

In contrast, Tencent Music Entertainment Group Sponsored ADR falls under the Media Conglomerates industry. Currently, this industry has 17 stocks and is ranked #160. Since the beginning of the year, the industry has moved -4.2%.

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

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This article originally published on Zacks Investment Research (zacks.com).

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