Is Charter Communications (CHTR) Outperforming Other Consumer Discretionary Stocks This Year?

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Charter Communications (CHTR) 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.

Charter Communications is one of 255 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 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 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. Charter Communications is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CHTR's full-year earnings has moved 4.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CHTR has returned 14% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 5.2% on average. This means that Charter Communications is performing better than its sector in terms of year-to-date returns.

Another stock in the Consumer Discretionary sector, Legacy Education Inc. (LGCY), has outperformed the sector so far this year. The stock's year-to-date return is 9.4%.

In Legacy Education Inc.'s case, the consensus EPS estimate for the current year increased 6.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Charter Communications belongs to the Cable Television industry, a group that includes 8 individual stocks and currently sits at #163 in the Zacks Industry Rank. On average, this group has lost an average of 0.6% so far this year, meaning that CHTR is performing better in terms of year-to-date returns.

Legacy Education Inc. however, belongs to the Schools industry. Currently, this 17-stock industry is ranked #21. The industry has moved +7.5% so far this year.

Charter Communications and Legacy Education Inc. 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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This article originally published on Zacks Investment Research (zacks.com).

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