The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Culp, Inc. (CULP) 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.
Culp, Inc. is one of 259 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Culp, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CULP's full-year earnings has moved 326.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, CULP has moved about 6.5% on a year-to-date basis. Meanwhile, stocks in the Consumer Discretionary group have lost about 9.2% on average. As we can see, Culp, Inc. is performing better than its sector in the calendar year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Marcus (MCS). The stock has returned 40.8% year-to-date.
Over the past three months, Marcus' consensus EPS estimate for the current year has increased 8.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Culp, Inc. is a member of the Textile - Home Furnishing industry, which includes 5 individual companies and currently sits at #67 in the Zacks Industry Rank. Stocks in this group have lost about 33.5% so far this year, so CULP is performing better this group in terms of year-to-date returns.
In contrast, Marcus falls under the Leisure and Recreation Services industry. Currently, this industry has 28 stocks and is ranked #172. Since the beginning of the year, the industry has moved -7.4%.
Investors with an interest in Consumer Discretionary stocks should continue to track Culp, Inc. and Marcus. These stocks will be looking to continue their solid performance.
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Culp, Inc. (CULP): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).