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Is Discovery Communications (DISCA) Outperforming Other Consumer Discretionary Stocks This Year?

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Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Discovery Communications 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? 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.

Discovery Communications is one of 276 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Discovery Communications is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DISCA's full-year earnings has moved 1.6% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that DISCA has returned about 21.5% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 2.6% on average. This means that Discovery Communications is outperforming the sector as a whole this year.

Another stock in the Consumer Discretionary sector, InterContinental Hotels (IHG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 3.4%.

In InterContinental Hotels' case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Discovery Communications is a member of the Broadcast Radio and Television industry, which includes 21 individual companies and currently sits at #89 in the Zacks Industry Rank.


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