Is Cinemark (CNK) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks
2024-10-11

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Cinemark Holdings (CNK) 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.

Cinemark Holdings is a member of the Consumer Discretionary sector. This group includes 272 individual stocks and currently holds a Zacks Sector Rank of #8. 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. Cinemark Holdings is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CNK's full-year earnings has moved 39.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, CNK has gained about 103.2% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 0.2%. As we can see, Cinemark Holdings is performing better than its sector in the calendar year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is iPower Inc. (IPW). The stock has returned 237.8% year-to-date.

For iPower Inc. the consensus EPS estimate for the current year has increased 116.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Cinemark Holdings is a member of the Leisure and Recreation Services industry, which includes 31 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 17.1% this year, meaning that CNK is performing better in terms of year-to-date returns.

iPower Inc. however, belongs to the Consumer Products - Discretionary industry. Currently, this 25-stock industry is ranked #73. The industry has moved +15.7% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track Cinemark Holdings and iPower Inc. These stocks will be looking to continue their solid performance.

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