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Is Pearson (PSO) 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. Pearson (PSO - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Pearson is a member of the Consumer Discretionary sector. This group includes 285 individual stocks and currently holds a Zacks Sector Rank of #15. 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. Pearson is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for PSO's full-year earnings has moved 3.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, PSO has gained about 33.5% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -32.1% on a year-to-date basis. As we can see, Pearson is performing better than its sector in the calendar year.

Another stock in the Consumer Discretionary sector, Snap-On (SNA - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 9.7%.

For Snap-On, the consensus EPS estimate for the current year has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Pearson belongs to the Media Conglomerates industry, which includes 7 individual stocks and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have lost about 33.6% so far this year, so PSO is performing better this group in terms of year-to-date returns.

In contrast, Snap-On falls under the Tools - Handheld industry. Currently, this industry has 3 stocks and is ranked #194. Since the beginning of the year, the industry has moved +12.7%.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Pearson and Snap-On as they attempt to continue their solid performance.


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