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Are Consumer Discretionary Stocks Lagging Stride (LRN) 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. Is K12 (LRN - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

K12 is one of 280 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #13 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. K12 is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LRN's full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, LRN has returned 31.4% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 7.2%. This means that K12 is performing better than its sector in terms of year-to-date returns.

Cinemark Holdings (CNK - 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 84.7%.

In Cinemark Holdings' case, the consensus EPS estimate for the current year increased 19.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, K12 belongs to the Schools industry, a group that includes 18 individual stocks and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have lost about 1.2% so far this year, so LRN is performing better this group in terms of year-to-date returns.

On the other hand, Cinemark Holdings belongs to the Leisure and Recreation Services industry. This 31-stock industry is currently ranked #215. The industry has moved -7.3% year to date.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on K12 and Cinemark Holdings as they attempt to continue their solid performance.


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