Is H&R Block (HRB) 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. Has H&R Block (HRB) been one of those stocks this year? 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.
H&R Block is one of 288 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #14 within 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 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. H&R Block is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for HRB's full-year earnings has moved 3.6% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, HRB has moved about 84.3% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -40% on a year-to-date basis. This means that H&R Block is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Target Hospitality (TH), has outperformed the sector so far this year. The stock's year-to-date return is 250.3%.
For Target Hospitality, the consensus EPS estimate for the current year has increased 1273.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, H&R Block is a member of the Consumer Services - Miscellaneous industry, which includes 14 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have lost about 15.7% so far this year, so HRB is performing better this group in terms of year-to-date returns.
On the other hand, Target Hospitality belongs to the Leisure and Recreation Services industry. This 31-stock industry is currently ranked #154. The industry has moved -40.6% year to date.
H&R Block and Target Hospitality could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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