For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Michael Kors Holdings (KORS) 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? One simple way to answer this question is to take a look at the year-to-date performance of KORS and the rest of the Consumer Discretionary group's stocks.
Michael Kors Holdings is one of 243 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #10 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 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. KORS is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for KORS's full-year earnings has moved 5.04% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, KORS has returned 5.80% so far this year. In comparison, Consumer Discretionary companies have returned an average of 5.05%. This means that Michael Kors Holdings is outperforming the sector as a whole this year.
Looking more specifically, KORS belongs to the Textile - Apparel industry, which includes 12 individual stocks and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 22.89% so far this year, meaning that KORS is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to KORS as it looks to continue its solid performance.
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