For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. lululemon athletica (LULU - 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 LULU and the rest of the Consumer Discretionary group's stocks.
lululemon athletica is one of 244 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within 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 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. 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 5.42% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that LULU has returned about 43.51% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have gained about 19.10% on average. As we can see, lululemon athletica is performing better than its sector in the calendar year.
Breaking things down more, LULU is a member of the Textile - Apparel industry, which includes 21 individual companies and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have gained about 25.47% so far this year, so LULU is performing better this group in terms of year-to-date returns.
LULU 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.