Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Snap-On (SNA) one of those stocks right now? 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.
Snap-On is one of 259 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Snap-On is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SNA's full-year earnings has moved 0.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that SNA has returned about 7.1% since the start of the calendar year. In comparison, Consumer Discretionary companies have returned an average of -11.3%. This shows that Snap-On is outperforming its peers so far this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Smith & Wesson (SWBI). The stock is up 53% year-to-date.
For Smith & Wesson, the consensus EPS estimate for the current year has increased 14.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Snap-On belongs to the Tools - Handheld industry, a group that includes 2 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, stocks in this group have gained 15.3% this year, meaning that SNA is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Smith & Wesson belongs to the Leisure and Recreation Products industry. This 24-stock industry is currently ranked #72. The industry has moved -27.2% year to date.
Snap-On and Smith & Wesson could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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Snap-On Incorporated (SNA): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).