The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Roku (ROKU) 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.
Roku is one of 265 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Roku is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ROKU's full-year earnings has moved 182.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ROKU has returned 25.5% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 14.8%. This means that Roku is outperforming the sector as a whole this year.
Another stock in the Consumer Discretionary sector, Super Group (SGHC) Limited (SGHC), has outperformed the sector so far this year. The stock's year-to-date return is 92%.
Over the past three months, Super Group (SGHC) Limited's consensus EPS estimate for the current year has increased 38.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Roku belongs to the Broadcast Radio and Television industry, which includes 19 individual stocks and currently sits at #97 in the Zacks Industry Rank. This group has lost an average of 60.1% so far this year, so ROKU is performing better in this area.
Super Group (SGHC) Limited, however, belongs to the Gaming industry. Currently, this 40-stock industry is ranked #162. The industry has moved +6.5% so far this year.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Roku and Super Group (SGHC) Limited as they attempt to continue their solid performance.
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Roku, Inc. (ROKU): Free Stock Analysis Report Super Group (SGHC) Limited (SGHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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