Is Netflix (NFLX) Outperforming Other Consumer Discretionary Stocks This Year?
Investors focused on the Consumer Discretionary space have likely heard of Netflix (NFLX), but is the stock performing well in comparison to the rest of its sector peers? 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.
Netflix is a member of the Consumer Discretionary sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #13. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. NFLX is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for NFLX's full-year earnings has moved 7.23% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that NFLX has returned about 62.41% since the start of the calendar year. In comparison, Consumer Discretionary companies have returned an average of -9.74%. This shows that Netflix is outperforming its peers so far this year.
Breaking things down more, NFLX is a member of the Broadcast Radio and Television industry, which includes 23 individual companies and currently sits at #105 in the Zacks Industry Rank. On average, this group has gained an average of 14.13% so far this year, meaning that NFLX is performing better in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on NFLX as it attempts to continue its solid performance.
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