The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Peloton Interactive (PTON) 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 PTON and the rest of the Consumer Discretionary group's stocks.
Peloton Interactive is one of 238 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #14 in 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. PTON is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PTON's full-year earnings has moved 68.88% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, PTON has moved about 106.09% on a year-to-date basis. At the same time, Consumer Discretionary stocks have lost an average of 7.66%. This means that Peloton Interactive is outperforming the sector as a whole this year.
To break things down more, PTON belongs to the Leisure and Recreation Products industry, a group that includes 15 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 43.79% this year, meaning that PTON is performing better in terms of year-to-date returns.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to PTON as it looks to continue its solid performance.
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Peloton Interactive, Inc. (PTON): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.