Is Airbnb (ABNB) Stock Outpacing Its Consumer Discretionary Peers This Year?

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Airbnb, Inc. (ABNB) 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.

Airbnb, Inc. is a member of the Consumer Discretionary sector. This group includes 260 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Airbnb, Inc. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ABNB's full-year earnings has moved 7.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ABNB has returned 18.2% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -12.1% on a year-to-date basis. As we can see, Airbnb, Inc. is performing better than its sector in the calendar year.

Another stock in the Consumer Discretionary sector, Carter's (CRI), has outperformed the sector so far this year. The stock's year-to-date return is 4.3%.

Over the past three months, Carter's' consensus EPS estimate for the current year has increased 6.2%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Airbnb, Inc. belongs to the Leisure and Recreation Services industry, a group that includes 29 individual companies and currently sits at #181 in the Zacks Industry Rank. On average, this group has lost an average of 8.2% so far this year, meaning that ABNB is performing better in terms of year-to-date returns.

Carter's, however, belongs to the Shoes and Retail Apparel industry. Currently, this 10-stock industry is ranked #223. The industry has moved -40.1% so far this year.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Airbnb, Inc. and Carter's as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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