Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Netflix (NFLX) one of those stocks right now? 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.
Netflix is a member of our Consumer Discretionary group, which includes 257 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Netflix is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NFLX's full-year earnings has moved 4.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NFLX has returned 6.1% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 7.7% on average. This shows that Netflix is outperforming its peers so far this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Super Group (SGHC) Limited (SGHC). The stock has returned 12% year-to-date.
In Super Group (SGHC) Limited's case, the consensus EPS estimate for the current year increased 27.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Netflix belongs to the Broadcast Radio and Television industry, a group that includes 19 individual stocks and currently sits at #33 in the Zacks Industry Rank. This group has gained an average of 3.1% so far this year, so NFLX is performing better in this area.
Super Group (SGHC) Limited, however, belongs to the Gaming industry. Currently, this 41-stock industry is ranked #144. The industry has moved -9.3% so far this year.
Investors with an interest in Consumer Discretionary stocks should continue to track Netflix and Super Group (SGHC) Limited. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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