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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. K12 (LRN - 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? 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.

K12 is one of 257 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #13 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for LRN's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, LRN has gained about 32.7% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 8.3%. This means that K12 is outperforming the sector as a whole this year.

Life Time Group Holdings, Inc. (LTH - 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 35%.

For Life Time Group Holdings, Inc. the consensus EPS estimate for the current year has increased 6% 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 17 individual stocks and currently sits at #63 in the Zacks Industry Rank. On average, stocks in this group have lost 2.3% this year, meaning that LRN is performing better in terms of year-to-date returns.

Life Time Group Holdings, Inc. however, belongs to the Leisure and Recreation Services industry. Currently, this 31-stock industry is ranked #142. The industry has moved -18.5% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track K12 and Life Time Group Holdings, Inc. These stocks will be looking to continue their solid performance.


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