Back to top

Image: Bigstock

Are Consumer Discretionary Stocks Lagging Strategic Education (STRA) This Year?

Read MoreHide Full Article

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Strategic Education (STRA - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Strategic Education is a member of our Consumer Discretionary group, which includes 285 different companies and currently sits at #8 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 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. Strategic Education is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for STRA's full-year earnings has moved 14.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, STRA has gained about 26.3% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 1.4% on average. This means that Strategic Education is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is iPower Inc. (IPW - Free Report) . The stock is up 251.1% year-to-date.

For iPower Inc. the consensus EPS estimate for the current year has increased 50% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Strategic Education belongs to the Schools industry, a group that includes 19 individual companies and currently sits at #31 in the Zacks Industry Rank. Stocks in this group have gained about 6.5% so far this year, so STRA is performing better this group in terms of year-to-date returns.

iPower Inc. however, belongs to the Consumer Products - Discretionary industry. Currently, this 24-stock industry is ranked #54. The industry has moved +10.5% so far this year.

Strategic Education and iPower Inc. could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


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


Strategic Education Inc. (STRA) - free report >>

iPower Inc. (IPW) - free report >>

Published in