The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is lululemon athletica (LULU - 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.
lululemon athletica is a member of the Consumer Discretionary sector. This group includes 250 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. LULU is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LULU's full-year earnings has moved 4.07% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, LULU has returned 24.24% so far this year. In comparison, Consumer Discretionary companies have returned an average of 13.41%. As we can see, lululemon athletica is performing better than its sector in the calendar year.
To break things down more, LULU belongs to the Textile - Apparel industry, a group that includes 22 individual companies and currently sits at #16 in the Zacks Industry Rank. This group has gained an average of 21.51% so far this year, so LULU is performing better in this area.
Investors in the Consumer Discretionary sector will want to keep a close eye on LULU as it attempts to continue its solid performance.