Back to top

Image: Bigstock

Are Consumer Discretionary Stocks Lagging Adidas (ADDYY) This Year?

Read MoreHide Full Article

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 Adidas AG (ADDYY - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Adidas AG is one of 273 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Adidas AG is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ADDYY's full-year earnings has moved 13.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ADDYY has returned 27.3% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 4.5% on average. This means that Adidas AG is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is SharkNinja, Inc. (SN - Free Report) . The stock is up 110.9% year-to-date.

Over the past three months, SharkNinja, Inc.'s consensus EPS estimate for the current year has increased 12%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Adidas AG belongs to the Shoes and Retail Apparel industry, which includes 11 individual stocks and currently sits at #42 in the Zacks Industry Rank. This group has lost an average of 14.7% so far this year, so ADDYY is performing better in this area.

SharkNinja, Inc. however, belongs to the Furniture industry. Currently, this 10-stock industry is ranked #177. The industry has moved +36.8% so far this year.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Adidas AG and SharkNinja, Inc. as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Adidas AG (ADDYY) - free report >>

SharkNinja, Inc. (SN) - free report >>

Published in