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Are Consumer Discretionary Stocks Lagging Netflix (NFLX) 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. Is Netflix (NFLX - Free Report) one of those stocks right now? 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.

Netflix is a member of the Consumer Discretionary sector. This group includes 280 individual stocks and currently holds a Zacks Sector Rank of #10. 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 3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, NFLX has gained about 9.6% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 9.3% on a year-to-date basis. As we can see, Netflix is performing better than its sector in the calendar year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Warner Bros. Discovery (WBD - Free Report) . The stock is up 68.1% year-to-date.

The consensus estimate for Warner Bros. Discovery's current year EPS has increased 13.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Netflix belongs to the Broadcast Radio and Television industry, a group that includes 23 individual companies and currently sits at #214 in the Zacks Industry Rank. This group has gained an average of 13.4% so far this year, so NFLX is slightly underperforming its industry in this area. Warner Bros. Discovery is also part of the same industry.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Netflix and Warner Bros. Discovery as they could maintain their solid performance.


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