For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Weight Watchers International (WTW - 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? One simple way to answer this question is to take a look at the year-to-date performance of WTW and the rest of the Consumer Discretionary group's stocks.
Weight Watchers International is a member of the Consumer Discretionary sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #14. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. WTW is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for WTW's full-year earnings has moved 3.55% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, WTW has gained about 77.35% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 5.23%. This shows that Weight Watchers International is outperforming its peers so far this year.
Looking more specifically, WTW belongs to the Consumer Services - Miscellaneous industry, a group that includes 9 individual stocks and currently sits at #123 in the Zacks Industry Rank. On average, this group has gained an average of 10.96% so far this year, meaning that WTW is performing better in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on WTW as it attempts to continue its solid performance.