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Are Consumer Discretionary Stocks Lagging lululemon athletica (LULU) 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. Lululemon (LULU - 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.

Lululemon is one of 280 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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

Within the past quarter, the Zacks Consensus Estimate for LULU's full-year earnings has moved 2.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, LULU has returned 20.2% so far this year. In comparison, Consumer Discretionary companies have returned an average of 14%. As we can see, Lululemon is performing better than its sector in the calendar year.

Marriott International (MAR - 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 38.9%.

The consensus estimate for Marriott International's current year EPS has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Lululemon belongs to the Textile - Apparel industry, which includes 18 individual stocks and currently sits at #205 in the Zacks Industry Rank. On average, stocks in this group have gained 0.9% this year, meaning that LULU is performing better in terms of year-to-date returns.

On the other hand, Marriott International belongs to the Hotels and Motels industry. This 15-stock industry is currently ranked #166. The industry has moved +24.7% year to date.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Lululemon and Marriott International as they could maintain their solid performance.


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