Are Consumer Discretionary Stocks Lagging Haleon PLC Sponsored ADR (HLN) 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 Haleon PLC Sponsored ADR (HLN) 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.

Haleon PLC Sponsored ADR is one of 261 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #12 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 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. Haleon PLC Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for HLN's full-year earnings has moved 0.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that HLN has returned about 0.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 1.3% on average. This means that Haleon PLC Sponsored ADR is performing better than its sector in terms of year-to-date returns.

Reynolds Consumer Products (REYN) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.3%.

Over the past three months, Reynolds Consumer Products' consensus EPS estimate for the current year has increased 7.7%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Haleon PLC Sponsored ADR belongs to the Consumer Products - Discretionary industry, a group that includes 27 individual companies and currently sits at #159 in the Zacks Industry Rank. Stocks in this group have lost about 3% so far this year, so HLN is performing better this group in terms of year-to-date returns. Reynolds Consumer Products is also part of the same industry.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Haleon PLC Sponsored ADR and Reynolds Consumer Products as they attempt to continue their solid performance.

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

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