For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Accel Entertainment (ACEL) 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? 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.
Accel Entertainment is one of 255 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #12 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 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. Accel Entertainment is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ACEL's full-year earnings has moved 8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ACEL has returned 5.3% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 3.8%. This means that Accel Entertainment is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Sendas Distribuidora S.A. Sponsored ADR (ASAIY). The stock is up 126% year-to-date.
In Sendas Distribuidora S.A. Sponsored ADR's case, the consensus EPS estimate for the current year increased 14.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Accel Entertainment belongs to the Gaming industry, a group that includes 41 individual stocks and currently sits at #90 in the Zacks Industry Rank. On average, stocks in this group have gained 0.7% this year, meaning that ACEL is performing better in terms of year-to-date returns.
In contrast, Sendas Distribuidora S.A. Sponsored ADR falls under the Consumer Products - Discretionary industry. Currently, this industry has 24 stocks and is ranked #142. Since the beginning of the year, the industry has moved -8.3%.
Investors with an interest in Consumer Discretionary stocks should continue to track Accel Entertainment and Sendas Distribuidora S.A. Sponsored ADR. These stocks will be looking to continue their solid performance.
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Accel Entertainment, Inc. (ACEL): Free Stock Analysis Report Sendas Distribuidora S.A. Sponsored ADR (ASAIY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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