The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. K12 (LRN) 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.
K12 is one of 261 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #13 within 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 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 #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for LRN's full-year earnings has moved 0.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, LRN has returned 27.4% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 1.9% on average. This means that K12 is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, American Public Education (APEI), has outperformed the sector so far this year. The stock's year-to-date return is 9.7%.
For American Public Education, the consensus EPS estimate for the current year has increased 2.8% 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 #165 in the Zacks Industry Rank. On average, this group has lost an average of 0.1% so far this year, meaning that LRN is performing better in terms of year-to-date returns. American Public Education is also part of the same industry.
K12 and American Public Education 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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Stride, Inc. (LRN): Free Stock Analysis Report American Public Education, Inc. (APEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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