For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Malibu Boats (MBUU - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.
Malibu Boats is one of 244 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. MBUU is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MBUU's full-year earnings has moved 4.11% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, MBUU has returned 5.06% so far this year. In comparison, Consumer Discretionary companies have returned an average of 13.78%. This means that Malibu Boats is outperforming the sector as a whole this year.
Breaking things down more, MBUU is a member of the Leisure and Recreation Products industry, which includes 16 individual companies and currently sits at #23 in the Zacks Industry Rank. On average, this group has gained an average of 10.84% so far this year, meaning that MBUU is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on MBUU as it attempts to continue its solid performance.