Is Deckers Outdoor (DECK) Stock Outpacing Its Consumer Discretionary Peers This Year?
The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Deckers (DECK) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Deckers is one of 281 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #9 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. Deckers is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DECK's full-year earnings has moved 1.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DECK has gained about 5.2% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 4.4% on average. As we can see, Deckers is performing better than its sector in the calendar year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is PlayAGS (AGS). The stock is up 35.7% year-to-date.
The consensus estimate for PlayAGS's current year EPS has increased 72.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Deckers is a member of the Shoes and Retail Apparel industry, which includes 11 individual companies and currently sits at #178 in the Zacks Industry Rank. On average, this group has gained an average of 2.4% so far this year, meaning that DECK is performing better in terms of year-to-date returns.
PlayAGS, however, belongs to the Gaming industry. Currently, this 41-stock industry is ranked #76. The industry has moved +20.9% so far this year.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Deckers and PlayAGS as they could maintain their solid performance.
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