Back to top

Image: Bigstock

Is Stride (LRN) Outperforming Other Consumer Discretionary Stocks This Year?

Read MoreHide Full Article

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is K12 (LRN - 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.

K12 is one of 292 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #12 within 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for LRN's full-year earnings has moved 8.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, LRN has returned 3.2% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 2.4%. As we can see, K12 is performing better than its sector in the calendar year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Netflix (NFLX - Free Report) . The stock has returned 16.6% year-to-date.

For Netflix, the consensus EPS estimate for the current year has increased 6.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, K12 belongs to the Schools industry, a group that includes 19 individual companies and currently sits at #31 in the Zacks Industry Rank. This group has gained an average of 0% so far this year, so LRN is performing better in this area.

In contrast, Netflix falls under the Broadcast Radio and Television industry. Currently, this industry has 22 stocks and is ranked #183. Since the beginning of the year, the industry has moved +11%.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on K12 and Netflix as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Netflix, Inc. (NFLX) - free report >>

Stride, Inc. (LRN) - free report >>

Published in