Investors focused on the Consumer Discretionary space have likely heard of lululemon athletica (LULU), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of LULU and the rest of the Consumer Discretionary group's stocks.
lululemon athletica is one of 250 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 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 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).
Over the past 90 days, the Zacks Consensus Estimate for LULU's full-year earnings has moved 2.43% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, LULU has returned 52.50% so far this year. In comparison, Consumer Discretionary companies have returned an average of 19.71%. This means that lululemon athletica is performing better than its sector in terms of year-to-date returns.
Breaking things down more, LULU is a member of the Textile - Apparel industry, which includes 22 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 19.23% so far this year, meaning that LULU is performing better in terms of year-to-date returns.
LULU will likely be looking to continue its solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to the company.
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