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Are Consumer Discretionary Stocks Lagging DraftKings (DKNG) 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. Is DraftKings (DKNG - 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.

DraftKings is one of 253 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. DraftKings is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DKNG's full-year earnings has moved 10% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, DKNG has returned 17.4% so far this year. In comparison, Consumer Discretionary companies have returned an average of 9.9%. This means that DraftKings 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 Lincoln Educational Services Corporation (LINC - Free Report) . The stock is up 21.2% year-to-date.

For Lincoln Educational Services Corporation, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DraftKings belongs to the Gaming industry, which includes 39 individual stocks and currently sits at #149 in the Zacks Industry Rank. On average, this group has gained an average of 21.2% so far this year, meaning that DKNG is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Lincoln Educational Services Corporation falls under the Schools industry. Currently, this industry has 18 stocks and is ranked #17. Since the beginning of the year, the industry has moved +4.9%.

DraftKings and Lincoln Educational Services Corporation could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


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