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 Alto Ingredients (ALTO) 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.
Alto Ingredients is a member of the Consumer Discretionary sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #8. 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. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALTO's full-year earnings has moved 237.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ALTO has returned 81.3% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 8.4% on average. This shows that Alto Ingredients is outperforming its peers so far this year.
Hugo Boss (BOSSY) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.5%.
For Hugo Boss, the consensus EPS estimate for the current year has increased 4.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, a group that includes 25 individual stocks and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have lost about 0.3% so far this year, so ALTO is performing better this group in terms of year-to-date returns.
On the other hand, Hugo Boss belongs to the Textile - Apparel industry. This 22-stock industry is currently ranked #52. The industry has moved -7.2% year to date.
Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Hugo Boss. These stocks will be looking to continue their solid performance.
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Alto Ingredients, Inc. (ALTO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).