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Is The Honest Company (HNST) Stock Outpacing Its Consumer Discretionary Peers 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. Is Honest (HNST - 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.

Honest is one of 292 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 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 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. Honest is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for HNST's full-year earnings has moved 21.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, HNST has moved about 33.9% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of 2.1% on a year-to-date basis. This means that Honest is outperforming the sector as a whole this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Strategic Education (STRA - Free Report) . The stock has returned 12.3% year-to-date.

For Strategic Education, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Honest is a member of the Consumer Products - Discretionary industry, which includes 25 individual companies and currently sits at #58 in the Zacks Industry Rank. On average, this group has gained an average of 3.6% so far this year, meaning that HNST is performing better in terms of year-to-date returns.

Strategic Education, however, belongs to the Schools industry. Currently, this 19-stock industry is ranked #19. The industry has moved +6.1% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track Honest and Strategic Education. These stocks will be looking to continue their solid performance.


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