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Is Light & Wonder (LNW) Outperforming Other Consumer Discretionary Stocks 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. Light & Wonder (LNW - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Light & Wonder is one of 292 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. Light & Wonder is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for LNW's full-year earnings has moved 1.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, LNW has moved about 3% on a year-to-date basis. At the same time, Consumer Discretionary stocks have gained an average of 1%. As we can see, Light & Wonder is performing better than its sector in the calendar year.

Naspers Ltd. (NPSNY - 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 3.5%.

Over the past three months, Naspers Ltd.'s consensus EPS estimate for the current year has increased 40.5%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Light & Wonder belongs to the Gaming industry, which includes 39 individual stocks and currently sits at #98 in the Zacks Industry Rank. Stocks in this group have gained about 4.8% so far this year, so LNW is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Naspers Ltd. belongs to the Cable Television industry. This 10-stock industry is currently ranked #168. The industry has moved -9.2% year to date.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Light & Wonder and Naspers Ltd. as they attempt to continue their solid performance.


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