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Is DraftKings (DKNG) 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 DraftKings (DKNG - 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.

DraftKings is a member of our Consumer Discretionary group, which includes 282 different companies and currently sits at #7 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 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. DraftKings is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DKNG's full-year earnings has moved 9.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, DKNG has gained about 121.5% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 10.5% on average. This means that DraftKings is performing better than its sector in terms of year-to-date returns.

Another stock in the Consumer Discretionary sector, Royal Caribbean (RCL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 105.9%.

In Royal Caribbean's case, the consensus EPS estimate for the current year increased 44.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, DraftKings belongs to the Gaming industry, a group that includes 40 individual companies and currently sits at #72 in the Zacks Industry Rank. On average, stocks in this group have gained 23.7% this year, meaning that DKNG is performing better in terms of year-to-date returns.

In contrast, Royal Caribbean falls under the Leisure and Recreation Services industry. Currently, this industry has 34 stocks and is ranked #87. Since the beginning of the year, the industry has moved +27.1%.

Investors with an interest in Consumer Discretionary stocks should continue to track DraftKings and Royal Caribbean. These stocks will be looking to continue their solid performance.


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