Back to top

Image: Bigstock

Are Consumer Discretionary Stocks Lagging Crocs (CROX) This Year?

Read MoreHide Full Article

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Crocs (CROX - 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.

Crocs is a member of the Consumer Discretionary sector. This group includes 259 individual stocks and currently holds a Zacks Sector Rank of #12. 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. Crocs is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CROX's full-year earnings has moved 2.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CROX has returned about 40.5% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 11.7% on average. This means that Crocs is outperforming the sector as a whole this year.

Another stock in the Consumer Discretionary sector, Oriental Land (OLCLY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 10.5%.

The consensus estimate for Oriental Land's current year EPS has increased 10.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Crocs belongs to the Textile - Apparel industry, which includes 23 individual stocks and currently sits at #190 in the Zacks Industry Rank. Stocks in this group have lost about 4.1% so far this year, so CROX is performing better this group in terms of year-to-date returns.

In contrast, Oriental Land falls under the Hotels and Motels industry. Currently, this industry has 15 stocks and is ranked #99. Since the beginning of the year, the industry has moved +17.4%.

Crocs and Oriental Land could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.

Published in