The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Central Garden (CENTA) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.
Central Garden is a member of the Consumer Discretionary sector. This group includes 260 individual stocks and currently holds a Zacks Sector Rank of #8. 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. Central Garden is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CENTA's full-year earnings has moved 2.6% 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, CENTA has returned 32.8% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -8.8% on a year-to-date basis. This means that Central Garden is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Legacy Education Inc. (LGCY), has outperformed the sector so far this year. The stock's year-to-date return is 16.2%.
The consensus estimate for Legacy Education Inc.'s current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Central Garden is a member of the Consumer Products - Discretionary industry, which includes 28 individual companies and currently sits at #81 in the Zacks Industry Rank. Stocks in this group have gained about 7.1% so far this year, so CENTA is performing better this group in terms of year-to-date returns.
In contrast, Legacy Education Inc. falls under the Schools industry. Currently, this industry has 18 stocks and is ranked #90. Since the beginning of the year, the industry has moved +4.1%.
Investors with an interest in Consumer Discretionary stocks should continue to track Central Garden and Legacy Education Inc.. These stocks will be looking to continue their solid performance.
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Central Garden & Pet Company (CENTA): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).