Are Consumer Discretionary Stocks Lagging American Outdoor Brands (AOUT) This Year?

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. American Outdoor Brands, Inc. (AOUT) 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? Let's take a closer look at the stock's year-to-date performance to find out.

American Outdoor Brands, Inc. is one of 259 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 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. American Outdoor Brands, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for AOUT's full-year earnings has moved 20.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that AOUT has returned about 137.4% since the start of the calendar year. At the same time, Consumer Discretionary stocks have lost an average of 11.8%. This means that American Outdoor Brands, Inc. is outperforming the sector as a whole this year.

Cinemark Holdings (CNK) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 72.4%.

For Cinemark Holdings, the consensus EPS estimate for the current year has increased 13.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, American Outdoor Brands, Inc. belongs to the Leisure and Recreation Products industry, a group that includes 24 individual stocks and currently sits at #98 in the Zacks Industry Rank. On average, stocks in this group have lost 16.8% this year, meaning that AOUT is performing better in terms of year-to-date returns.

On the other hand, Cinemark Holdings belongs to the Film and Television Production and Distribution industry. This 8-stock industry is currently ranked #61. The industry has moved +6.8% year to date.

Investors with an interest in Consumer Discretionary stocks should continue to track American Outdoor Brands, Inc. and Cinemark Holdings. These stocks will be looking to continue their solid performance.

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

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