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Are Consumer Discretionary Stocks Lagging Stride (LRN) 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 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 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 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. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for LRN's full-year earnings has moved 9.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, LRN has returned 38.6% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 6.6%. This means that K12 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 Hengan International Group Co., Ltd. Unsponsored ADR (HEGIY - Free Report) . The stock is up 7.6% year-to-date.

For Hengan International Group Co., Ltd. Unsponsored ADR, the consensus EPS estimate for the current year has increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, K12 is a member of the Schools industry, which includes 18 individual companies and currently sits at #14 in the Zacks Industry Rank. On average, stocks in this group have gained 2.1% this year, meaning that LRN is performing better in terms of year-to-date returns.

Hengan International Group Co., Ltd. Unsponsored ADR, however, belongs to the Consumer Products - Discretionary industry. Currently, this 22-stock industry is ranked #71. The industry has moved -10.9% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track K12 and Hengan International Group Co., Ltd. Unsponsored ADR. These stocks will be looking to continue their solid performance.


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