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Is MGM Resorts International (MGM) 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. Is MGM Resorts (MGM - 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.

MGM Resorts is one of 282 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. MGM Resorts is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for MGM's full-year earnings has moved 31.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that MGM has returned about 32.3% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of 11.6% on a year-to-date basis. This shows that MGM Resorts is outperforming its peers so far this year.

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 97.7%.

For Royal Caribbean, the consensus EPS estimate for the current year has increased 32% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, MGM Resorts belongs to the Gaming industry, which includes 41 individual stocks and currently sits at #105 in the Zacks Industry Rank. On average, stocks in this group have gained 23.5% this year, meaning that MGM 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 #160. Since the beginning of the year, the industry has moved +22.1%.

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


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