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Is Roku (ROKU) Stock Outpacing Its Consumer Discretionary Peers 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. Roku (ROKU - 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.

Roku is one of 264 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #9 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. Roku is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ROKU's full-year earnings has moved 183.1% 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, ROKU has gained about 48.9% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 3.2% on average. This means that Roku is performing better than its sector in terms of year-to-date returns.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Super Group (SGHC - Free Report) Limited (SGHC - Free Report) . The stock has returned 90.4% year-to-date.

For Super Group (SGHC - Free Report) Limited, the consensus EPS estimate for the current year has increased 8.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Roku belongs to the Broadcast Radio and Television industry, a group that includes 19 individual companies and currently sits at #170 in the Zacks Industry Rank. On average, stocks in this group have gained 17.2% this year, meaning that ROKU is performing better in terms of year-to-date returns.

Super Group (SGHC - Free Report) Limited, however, belongs to the Gaming industry. Currently, this 41-stock industry is ranked #182. The industry has moved +10.4% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track Roku and Super Group (SGHC - Free Report) Limited. These stocks will be looking to continue their solid performance.


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