For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has American Outdoor Brands, Inc. (AOUT) been one of those stocks this year? 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.
American Outdoor Brands, Inc. is a member of the Consumer Discretionary sector. This group includes 261 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. American Outdoor Brands, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for AOUT's full-year earnings has moved 46.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AOUT has moved about 59.9% on a year-to-date basis. In comparison, Consumer Discretionary companies have returned an average of -9.2%. As we can see, American Outdoor Brands, Inc. is performing better than its sector in the calendar year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Cintas (CTAS). The stock has returned 8.8% year-to-date.
In Cintas' case, the consensus EPS estimate for the current year increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, American Outdoor Brands, Inc. is a member of the Leisure and Recreation Products industry, which includes 24 individual companies and currently sits at #57 in the Zacks Industry Rank. Stocks in this group have lost about 5.6% so far this year, so AOUT is performing better this group in terms of year-to-date returns.
In contrast, Cintas falls under the Textile - Apparel industry. Currently, this industry has 22 stocks and is ranked #166. Since the beginning of the year, the industry has moved +0.3%.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to American Outdoor Brands, Inc. and Cintas as they could maintain their solid performance.
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