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Is Netflix (NFLX) Stock Outpacing Its Consumer Discretionary Peers 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 Netflix (NFLX - 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.

Netflix is one of 281 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 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 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. Netflix is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NFLX's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, NFLX has returned 24.4% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 14.1% on a year-to-date basis. This means that Netflix is outperforming the sector as a whole this year.

Warner Bros. Discovery (WBD - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 53.6%.

For Warner Bros. Discovery, the consensus EPS estimate for the current year has increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Netflix is a member of the Broadcast Radio and Television industry, which includes 23 individual companies and currently sits at #105 in the Zacks Industry Rank. This group has gained an average of 21.5% so far this year, so NFLX is performing better in this area. Warner Bros. Discovery is also part of the same industry.

Netflix and Warner Bros. Discovery could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


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