Investors focused on the Consumer Discretionary space have likely heard of Ralph Lauren (RL), but is the stock performing well in comparison to the rest of its sector peers? 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.
Ralph Lauren is one of 241 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 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. RL is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for RL's full-year earnings has moved 5.64% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that RL has returned about 4.91% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of 1.24% on a year-to-date basis. This means that Ralph Lauren is outperforming the sector as a whole this year.
Breaking things down more, RL is a member of the Textile - Apparel industry, which includes 22 individual companies and currently sits at #68 in the Zacks Industry Rank. Stocks in this group have lost about 7.45% so far this year, so RL is performing better this group in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on RL as it attempts to continue its solid performance.