For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Duluth Holdings (DLTH) 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? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Duluth Holdings is one of 246 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #11 in 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 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. Duluth Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DLTH's full-year earnings has moved 31.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DLTH has returned 117.8% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 9.5%. This shows that Duluth Holdings is outperforming its peers so far this year.
Another stock in the Consumer Discretionary sector, Life Time Group Holdings, Inc. (LTH), has outperformed the sector so far this year. The stock's year-to-date return is 25.7%.
Over the past three months, Life Time Group Holdings, Inc.'s consensus EPS estimate for the current year has increased 0.1%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Duluth Holdings belongs to the Textile - Apparel industry, which includes 22 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, stocks in this group have lost 6.2% this year, meaning that DLTH is performing better in terms of year-to-date returns.
Life Time Group Holdings, Inc., however, belongs to the Leisure and Recreation Services industry. Currently, this 28-stock industry is ranked #195. The industry has moved -8.8% so far this year.
Investors with an interest in Consumer Discretionary stocks should continue to track Duluth Holdings and Life Time Group Holdings, Inc.. These stocks will be looking to continue their solid performance.
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Duluth Holdings Inc. (DLTH): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).