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Are Consumer Discretionary Stocks Lagging ADTALEM GBL EDU (ATGE) 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. Has Adtalem Global Education (ATGE - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Adtalem Global Education is one of 255 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Adtalem Global Education is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ATGE's full-year earnings has moved 5.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ATGE has gained about 41.4% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 11.2%. This means that Adtalem Global Education is outperforming the sector as a whole this year.

Fox (FOXA - 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 16.9%.

Over the past three months, Fox's consensus EPS estimate for the current year has increased 2.6%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Adtalem Global Education is a member of the Schools industry, which includes 17 individual companies and currently sits at #10 in the Zacks Industry Rank. On average, stocks in this group have gained 10.4% this year, meaning that ATGE is performing better in terms of year-to-date returns.

Fox, however, belongs to the Broadcast Radio and Television industry. Currently, this 19-stock industry is ranked #96. The industry has moved +36.2% so far this year.

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


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