Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Carter's (CRI) 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.
Carter's is one of 256 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #11 in 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Carter's is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CRI's full-year earnings has moved 1.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CRI has returned 16% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 3.1% on average. This means that Carter's 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 Johnson Outdoor (JOUT). The stock has returned 16.2% year-to-date.
The consensus estimate for Johnson Outdoor's current year EPS has increased 9.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Carter's belongs to the Shoes and Retail Apparel industry, a group that includes 8 individual companies and currently sits at #163 in the Zacks Industry Rank. This group has lost an average of 2.3% so far this year, so CRI is performing better in this area.
On the other hand, Johnson Outdoor belongs to the Leisure and Recreation Products industry. This 24-stock industry is currently ranked #78. The industry has moved +10.5% year to date.
Carter's and Johnson Outdoor 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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Carter's, Inc. (CRI): Free Stock Analysis Report Johnson Outdoors Inc. (JOUT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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