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Is K12 (LRN) 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. 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? One simple way to answer this question is to take a look at the year-to-date performance of LRN and the rest of the Consumer Discretionary group's stocks.

K12 is one of 250 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. LRN is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for LRN's full-year earnings has moved 3.29% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, LRN has returned 25.49% so far this year. In comparison, Consumer Discretionary companies have returned an average of 10.72%. This shows that K12 is outperforming its peers so far this year.

Breaking things down more, LRN is a member of the Schools industry, which includes 20 individual companies and currently sits at #29 in the Zacks Industry Rank. This group has gained an average of 12.58% so far this year, so LRN is performing better in this area.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to LRN as it looks to continue its solid performance.


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