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? One simple way to answer this question is to take a look at the year-to-date performance of ROKU and the rest of the Consumer Discretionary group's stocks.
Roku is a member of the Consumer Discretionary sector. This group includes 258 individual stocks and currently holds a Zacks Sector Rank of #10. 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. ROKU is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ROKU's full-year earnings has moved 51.99% 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 ROKU has returned about 11.80% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have gained about 0.34% on average. This shows that Roku is outperforming its peers so far this year.
Looking more specifically, ROKU belongs to the Broadcast Radio and Television industry, which includes 24 individual stocks and currently sits at #79 in the Zacks Industry Rank. On average, this group has gained an average of 21.08% so far this year, meaning that ROKU is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to ROKU as it looks to continue its solid performance.