Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Carter's (CRI) one of those stocks right now? 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.
Carter's is a member of the Consumer Discretionary sector. This group includes 260 individual stocks and currently holds a Zacks Sector Rank of #7. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Carter's is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CRI's full-year earnings has moved 3.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CRI has returned about 25.4% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 7.6% on average. As we can see, Carter's is performing better than its sector in the calendar year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Sirius XM (SIRI). The stock is up 52.6% year-to-date.
For Sirius XM, the consensus EPS estimate for the current year has increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Carter's is a member of the Shoes and Retail Apparel industry, which includes 10 individual companies and currently sits at #163 in the Zacks Industry Rank. On average, this group has lost an average of 26% so far this year, meaning that CRI is performing better in terms of year-to-date returns.
Sirius XM, however, belongs to the Broadcast Radio and Television industry. Currently, this 15-stock industry is ranked #161. The industry has moved -14.8% so far this year.
Carter's and Sirius XM 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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This article originally published on Zacks Investment Research (zacks.com).