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Is Trip.com Group Limited (TCOM) Stock Outpacing Its Consumer Discretionary Peers 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. Trip.com (TCOM - 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.

Trip.com is one of 285 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #11 in 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. Trip.com is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for TCOM's full-year earnings has moved 53.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, TCOM has moved about 3.6% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -37.9% on a year-to-date basis. This shows that Trip.com is outperforming its peers so far this year.

RCI Hospitality (RICK - 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 2%.

For RCI Hospitality, the consensus EPS estimate for the current year has increased 2.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Trip.com is a member of the Leisure and Recreation Services industry, which includes 31 individual companies and currently sits at #147 in the Zacks Industry Rank. This group has lost an average of 39.3% so far this year, so TCOM is performing better in this area. RCI Hospitality is also part of the same industry.

Trip.com and RCI Hospitality 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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