Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. BJ's Wholesale Club (BJ) 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? 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.
BJ's Wholesale Club is a member of the Consumer Discretionary sector. This group includes 267 individual stocks and currently holds a Zacks Sector Rank of #11. 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. BJ's Wholesale Club is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BJ's full-year earnings has moved 0.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BJ has returned 13.1% so far this year. Meanwhile, stocks in the Consumer Discretionary group have gained about 0.8% on average. This means that BJ's Wholesale Club is outperforming the sector as a whole this year.
Super Group (SGHC) Limited (SGHC) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.4%.
The consensus estimate for Super Group (SGHC) Limited's current year EPS has increased 11.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, BJ's Wholesale Club belongs to the Consumer Services - Miscellaneous industry, a group that includes 8 individual companies and currently sits at #184 in the Zacks Industry Rank. Stocks in this group have gained about 2.2% so far this year, so BJ is performing better this group in terms of year-to-date returns.
In contrast, Super Group (SGHC) Limited falls under the Gaming industry. Currently, this industry has 40 stocks and is ranked #137. Since the beginning of the year, the industry has moved -1.6%.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to BJ's Wholesale Club and Super Group (SGHC) Limited as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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