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Is TAL Education Group (TAL) Stock Outpacing Its Consumer Discretionary Peers 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. Is TAL Education (TAL - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

TAL Education 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 includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. TAL Education is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for TAL's full-year earnings has moved 40% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that TAL has returned about 65.9% since the start of the calendar year. In comparison, Consumer Discretionary companies have returned an average of -35.2%. This means that TAL Education is outperforming the sector as a whole this year.

Virco Manufacturing Corporation (VIRC - 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 41.5%.

In Virco Manufacturing Corporation's case, the consensus EPS estimate for the current year increased 84.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, TAL Education belongs to the Schools industry, a group that includes 18 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, this group has gained an average of 2.1% so far this year, meaning that TAL is performing better in terms of year-to-date returns.

On the other hand, Virco Manufacturing Corporation belongs to the Furniture industry. This 8-stock industry is currently ranked #99. The industry has moved -10.3% year to date.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on TAL Education and Virco Manufacturing Corporation as they attempt to continue their solid performance.


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