The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is lululemon athletica (LULU) 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.
lululemon athletica is one of 246 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #11 within 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 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. LULU is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for LULU's full-year earnings has moved 6.11% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, LULU has gained about 59% so far this year. In comparison, Consumer Discretionary companies have returned an average of 5.85%. This means that lululemon athletica is outperforming the sector as a whole this year.
Looking more specifically, LULU belongs to the Textile - Apparel industry, which includes 24 individual stocks and currently sits at #35 in the Zacks Industry Rank. On average, this group has gained an average of 26.33% so far this year, meaning that LULU is performing better in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on LULU as it attempts to continue its solid performance.
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