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Is Dunelm Group (DNLMY) Outperforming Other Consumer Discretionary Stocks This Year?

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Dunelm Group (DNLMY - 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? 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.

Dunelm Group is one of 277 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #13 within 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. Dunelm Group is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DNLMY's full-year earnings has moved 12.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that DNLMY has returned about 1.7% since the start of the calendar year. At the same time, Consumer Discretionary stocks have lost an average of 9.8%. This means that Dunelm Group is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is InterContinental Hotels (IHG - Free Report) . The stock is up 1.8% year-to-date.

The consensus estimate for InterContinental Hotels' current year EPS has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Dunelm Group belongs to the Textile - Home Furnishing industry, a group that includes 4 individual companies and currently sits at #95 in the Zacks Industry Rank. On average, stocks in this group have lost 16.4% this year, meaning that DNLMY is performing better in terms of year-to-date returns.

InterContinental Hotels, however, belongs to the Hotels and Motels industry. Currently, this 15-stock industry is ranked #210. The industry has moved -4.2% so far this year.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Dunelm Group and InterContinental Hotels as they could maintain their solid performance.


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