Is Sonos (SONO) Outperforming Other Consumer Discretionary Stocks This Year?
For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Sonos (SONO) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Sonos is one of 274 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Sonos is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SONO's full-year earnings has moved 10.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, SONO has moved about 28.2% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -11.7% on a year-to-date basis. This means that Sonos is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Container Store Group (TCS). The stock is up 4.2% year-to-date.
The consensus estimate for Container Store Group's current year EPS has increased 15.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Sonos is a member of the Audio Video Production industry, which includes 9 individual companies and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have gained about 16.9% so far this year, so SONO is performing better this group in terms of year-to-date returns.
Container Store Group, however, belongs to the Consumer Products - Discretionary industry. Currently, this 23-stock industry is ranked #165. The industry has moved -41% so far this year.
Sonos and Container Store Group 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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