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Is lululemon athletica (LULU) Outperforming Other Consumer Discretionary Stocks This Year?

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The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has lululemon athletica (LULU - Free Report) been one of those stocks this year? 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.

lululemon athletica is one of 272 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #6 in 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 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. LULU is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for LULU's full-year earnings has moved 7.73% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, LULU has moved about 24.62% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -6.56% on a year-to-date basis. This means that lululemon athletica is performing better than its sector in terms of year-to-date returns.

Looking more specifically, LULU belongs to the Textile - Apparel industry, a group that includes 22 individual stocks and currently sits at #22 in the Zacks Industry Rank. Stocks in this group have gained about 15.59% so far this year, so LULU is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to LULU as it looks to continue its solid performance.


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