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Is lululemon athletica (LULU) Stock Outpacing Its Consumer Discretionary Peers 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. Is Lululemon (LULU - 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.

Lululemon is one of 283 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #15 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. Lululemon is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LULU's full-year earnings has moved 0.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, LULU has moved about 2.8% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -33% on a year-to-date basis. This means that Lululemon is outperforming the sector as a whole this year.

Another stock in the Consumer Discretionary sector, PVH (PVH - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 13.5%.

Over the past three months, PVH's consensus EPS estimate for the current year has increased 4.2%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Lululemon belongs to the Textile - Apparel industry, a group that includes 20 individual stocks and currently sits at #202 in the Zacks Industry Rank. PVH is also part of the same industry.

Investors with an interest in Consumer Discretionary stocks should continue to track Lululemon and PVH. These stocks will be looking to continue their solid performance.


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