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Is MGM Resorts International (MGM) Stock Outpacing Its Consumer Discretionary Peers This Year?

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is MGM Resorts (MGM - 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.

MGM Resorts is one of 279 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. MGM Resorts is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MGM's full-year earnings has moved 18.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, MGM has moved about 9.3% on a year-to-date basis. In comparison, Consumer Discretionary companies have returned an average of 4.4%. As we can see, MGM Resorts is performing better than its sector in the calendar year.

Another stock in the Consumer Discretionary sector, Wynn Resorts (WYNN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 10.9%.

Over the past three months, Wynn Resorts' consensus EPS estimate for the current year has increased 51.8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, MGM Resorts belongs to the Gaming industry, a group that includes 39 individual stocks and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 13.7% so far this year, so MGM is slightly underperforming its industry in this area. Wynn Resorts is also part of the same industry.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to MGM Resorts and Wynn Resorts as they could maintain their solid performance.


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