Investors focused on the Consumer Discretionary space have likely heard of Zynga (ZNGA - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of ZNGA and the rest of the Consumer Discretionary group's stocks.
Zynga is a member of our Consumer Discretionary group, which includes 246 different companies and currently sits at #4 in the Zacks Sector Rank. 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 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. ZNGA is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ZNGA's full-year earnings has moved 35% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ZNGA has returned 38.68% so far this year. In comparison, Consumer Discretionary companies have returned an average of 16.90%. This means that Zynga is performing better than its sector in terms of year-to-date returns.
To break things down more, ZNGA belongs to the Gaming industry, a group that includes 22 individual companies and currently sits at #217 in the Zacks Industry Rank. This group has gained an average of 25.24% so far this year, so ZNGA is performing better in this area.
ZNGA will likely be looking to continue its solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to the company.