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? 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.
American Outdoor Brands, Inc. is one of 260 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #11 within the Zacks Sector Rank. 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 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. American Outdoor Brands, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AOUT's full-year earnings has moved 20.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AOUT has returned 120.1% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 13.1%. This shows that American Outdoor Brands, Inc. is outperforming its peers so far this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Cinemark Holdings (CNK). The stock is up 63.3% year-to-date.
The consensus estimate for Cinemark Holdings' current year EPS has increased 14.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, American Outdoor Brands, Inc. is a member of the Leisure and Recreation Products industry, which includes 24 individual companies and currently sits at #75 in the Zacks Industry Rank. This group has lost an average of 29.5% so far this year, so AOUT is performing better in this area.
Cinemark Holdings, however, belongs to the Film and Television Production and Distribution industry. Currently, this 8-stock industry is ranked #26. The industry has moved +4.2% so far this year.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to American Outdoor Brands, Inc. and Cinemark Holdings as they could maintain their solid performance.
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American Outdoor Brands, Inc. (AOUT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).