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Are Consumer Discretionary Stocks Lagging lululemon athletica (LULU) This Year?

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Lululemon (LULU) 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.

Lululemon is one of 276 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Lululemon is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for LULU's full-year earnings has moved 5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that LULU has returned about 11.3% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have gained about 7.6% on average. This shows that Lululemon is outperforming its peers so far this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Wynn Resorts (WYNN). The stock is up 22% year-to-date.

In Wynn Resorts' case, the consensus EPS estimate for the current year increased 99.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Lululemon belongs to the Textile - Apparel industry, a group that includes 18 individual stocks and currently sits at #189 in the Zacks Industry Rank. This group has lost an average of 3.6% so far this year, so LULU is performing better in this area.

On the other hand, Wynn Resorts belongs to the Gaming industry. This 39-stock industry is currently ranked #68. The industry has moved +26% year to date.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Lululemon and Wynn Resorts as they could maintain their solid performance.

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lululemon athletica inc. (LULU) : Free Stock Analysis Report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

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