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Are Consumer Discretionary Stocks Lagging Intercontinental Hotels Group (IHG) 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 InterContinental Hotels (IHG - Free Report) been one of those stocks this year? 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.

InterContinental Hotels is one of 285 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #9 in 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. InterContinental Hotels is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for IHG's full-year earnings has moved 5.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, IHG has moved about 12.1% on a year-to-date basis. Meanwhile, stocks in the Consumer Discretionary group have lost about 2.9% on average. This means that InterContinental Hotels is outperforming the sector as a whole this year.

Lincoln Educational Services Corporation (LINC - 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 17.9%.

Over the past three months, Lincoln Educational Services Corporation's consensus EPS estimate for the current year has increased 17.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, InterContinental Hotels belongs to the Hotels and Motels industry, a group that includes 13 individual stocks and currently sits at #181 in the Zacks Industry Rank. On average, this group has gained an average of 6.6% so far this year, meaning that IHG is performing better in terms of year-to-date returns.

On the other hand, Lincoln Educational Services Corporation belongs to the Schools industry. This 19-stock industry is currently ranked #33. The industry has moved +4% year to date.

InterContinental Hotels and Lincoln Educational Services Corporation 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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