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Is Bright Horizons Family Solutions (BFAM) 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 Bright Horizons Family Solutions (BFAM - Free Report) one of those stocks right now? 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.

Bright Horizons Family Solutions is one of 277 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #16 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Bright Horizons Family Solutions is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BFAM's full-year earnings has moved 0.7% 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 BFAM has returned about 5.4% since the start of the calendar year. At the same time, Consumer Discretionary stocks have lost an average of 8.5%. This means that Bright Horizons Family Solutions is outperforming the sector as a whole this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Six Flags (SIX - Free Report) . The stock is up 4% year-to-date.

The consensus estimate for Six Flags' current year EPS has increased 0.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Bright Horizons Family Solutions belongs to the Schools industry, which includes 19 individual stocks and currently sits at #142 in the Zacks Industry Rank. This group has lost an average of 6.6% so far this year, so BFAM is performing better in this area.

On the other hand, Six Flags belongs to the Leisure and Recreation Services industry. This 30-stock industry is currently ranked #165. The industry has moved -2.4% year to date.

Bright Horizons Family Solutions and Six Flags could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


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