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Is Sonos (SONO) Outperforming Other Consumer Discretionary Stocks This Year?

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Investors focused on the Consumer Discretionary space have likely heard of Sonos (SONO - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.

Sonos is one of 238 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 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. SONO is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SONO's full-year earnings has moved 236.84% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, SONO has gained about 61.72% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 13.55% on a year-to-date basis. This shows that Sonos is outperforming its peers so far this year.

Breaking things down more, SONO is a member of the Audio Video Production industry, which includes 9 individual companies and currently sits at #179 in the Zacks Industry Rank. Stocks in this group have gained about 38% so far this year, so SONO is performing better this group in terms of year-to-date returns.

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


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