Back to top

Image: Bigstock

Has H&R Block (HRB) Outpaced Other Consumer Discretionary Stocks This Year?

Read MoreHide Full Article

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. H&R Block (HRB - 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.

H&R Block is one of 288 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #14 within 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. H&R Block is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for HRB's full-year earnings has moved 3.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, HRB has returned 96.4% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 31.5%. This means that H&R Block is outperforming the sector as a whole this year.

Target Hospitality (TH - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 289.3%.

The consensus estimate for Target Hospitality's current year EPS has increased 1273.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, H&R Block belongs to the Consumer Services - Miscellaneous industry, a group that includes 14 individual companies and currently sits at #85 in the Zacks Industry Rank. Stocks in this group have lost about 8.9% so far this year, so HRB is performing better this group in terms of year-to-date returns.

In contrast, Target Hospitality falls under the Leisure and Recreation Services industry. Currently, this industry has 31 stocks and is ranked #143. Since the beginning of the year, the industry has moved -34.4%.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on H&R Block and Target Hospitality as they attempt to continue their solid performance.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

H&R Block, Inc. (HRB) - free report >>

Target Hospitality Corp. (TH) - free report >>

Published in