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Are Consumer Discretionary Stocks Lagging H&R Block (HRB) This Year?

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Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has H&R Block (HRB - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

H&R Block is one of 289 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 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 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. H&R Block is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HRB's full-year earnings has moved 10.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that HRB has returned about 90.1% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of -27.9% on a year-to-date basis. This means that H&R Block is outperforming the sector as a whole this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Target Hospitality (TH - Free Report) . The stock is up 257.3% year-to-date.

In Target Hospitality's case, the consensus EPS estimate for the current year increased 1273.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, H&R Block is a member of the Consumer Services - Miscellaneous industry, which includes 14 individual companies and currently sits at #93 in the Zacks Industry Rank. This group has lost an average of 6.7% so far this year, so HRB is performing better in this area.

On the other hand, Target Hospitality belongs to the Leisure and Recreation Services industry. This 31-stock industry is currently ranked #149. The industry has moved -29.1% year to date.

Investors with an interest in Consumer Discretionary stocks should continue to track H&R Block and Target Hospitality. These stocks will be looking to continue their solid performance.


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