For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Cinemark Holdings (CNK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.
Cinemark Holdings is a member of the Consumer Discretionary sector. This group includes 261 individual stocks and currently holds a Zacks Sector Rank of #12. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cinemark Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CNK's full-year earnings has moved 10.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, CNK has gained about 49.9% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 10.2%. This shows that Cinemark Holdings is outperforming its peers so far this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Hooker Furniture (HOFT). The stock is up 23.5% year-to-date.
Over the past three months, Hooker Furniture's consensus EPS estimate for the current year has increased 11%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cinemark Holdings belongs to the Film and Television Production and Distribution industry, a group that includes 8 individual stocks and currently sits at #22 in the Zacks Industry Rank. This group has gained an average of 8.2% so far this year, so CNK is performing better in this area.
Hooker Furniture, however, belongs to the Furniture industry. Currently, this 6-stock industry is ranked #195. The industry has moved -14.7% so far this year.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Cinemark Holdings and Hooker Furniture as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).