For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Life Time Group Holdings, Inc. (LTH) been one of those stocks this year? 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.
Life Time Group Holdings, Inc. is one of 260 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #12 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. Life Time Group Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for LTH's full-year earnings has moved 7.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that LTH has returned about 52.4% since the start of the calendar year. At the same time, Consumer Discretionary stocks have lost an average of 12.3%. This shows that Life Time Group Holdings, Inc. is outperforming its peers so far this year.
AMC Entertainment (AMC) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 84.6%.
In AMC Entertainment's case, the consensus EPS estimate for the current year increased 45.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Life Time Group Holdings, Inc. belongs to the Leisure and Recreation Services industry, which includes 29 individual stocks and currently sits at #179 in the Zacks Industry Rank. On average, this group has lost an average of 9% so far this year, meaning that LTH is performing better in terms of year-to-date returns. AMC Entertainment is also part of the same industry.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Life Time Group Holdings, Inc. and AMC Entertainment as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).