For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Hasbro (HAS) 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.
Hasbro is one of 246 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 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 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. Hasbro is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for HAS' full-year earnings has moved 6.1% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, HAS has gained about 1.8% so far this year. In comparison, Consumer Discretionary companies have returned an average of -9.8%. This shows that Hasbro is outperforming its peers so far this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Escalade (ESCA). The stock has returned 34.4% year-to-date.
The consensus estimate for Escalade's current year EPS has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Hasbro is a member of the Toys - Games - Hobbies industry, which includes 3 individual companies and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have lost about 7.5% so far this year, so HAS is performing better this group in terms of year-to-date returns.
In contrast, Escalade falls under the Leisure and Recreation Products industry. Currently, this industry has 21 stocks and is ranked #95. Since the beginning of the year, the industry has moved -0.7%.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Hasbro and Escalade as they attempt to continue their solid performance.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).