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Is Zynga (ZNGA) Stock Outpacing Its Consumer Discretionary Peers This Year?

Zacks Equity Research
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Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Zynga (ZNGA) 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.

Zynga is a member of the Consumer Discretionary sector. This group includes 251 individual stocks and currently holds a Zacks Sector Rank of #8. 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. ZNGA is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ZNGA's full-year earnings has moved 35% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ZNGA has returned 36.13% so far this year. In comparison, Consumer Discretionary companies have returned an average of 15.36%. As we can see, Zynga is performing better than its sector in the calendar year.

Breaking things down more, ZNGA is a member of the Gaming industry, which includes 20 individual companies and currently sits at #211 in the Zacks Industry Rank. This group has gained an average of 16.74% so far this year, so ZNGA is performing better in this area.

Investors in the Consumer Discretionary sector will want to keep a close eye on ZNGA as it attempts to continue its solid performance.


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