Are Consumer Discretionary Stocks Lagging Life Time Group Holdings (LTH) This Year?

Zacks
04 Mar

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Life Time Group Holdings, Inc. (LTH) 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.

Life Time Group Holdings, Inc. is a member of our Consumer Discretionary group, which includes 267 different companies and currently sits at #11 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 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. Life Time Group Holdings, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for LTH's full-year earnings has moved 29.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that LTH has returned about 42.1% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of 1.9% on a year-to-date basis. This means that Life Time Group Holdings, Inc. is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Mattel (MAT). The stock is up 18.6% year-to-date.

The consensus estimate for Mattel's current year EPS has increased 6.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Life Time Group Holdings, Inc. is a member of the Leisure and Recreation Services industry, which includes 31 individual companies and currently sits at #64 in the Zacks Industry Rank. On average, this group has lost an average of 2% so far this year, meaning that LTH is performing better in terms of year-to-date returns.

In contrast, Mattel falls under the Toys - Games - Hobbies industry. Currently, this industry has 4 stocks and is ranked #89. Since the beginning of the year, the industry has moved +13.7%.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Life Time Group Holdings, Inc. and Mattel as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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