Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Roku (ROKU – 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? 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.
Roku is a member of our Consumer Discretionary group, which includes 268 different companies and currently sits at #11 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Roku is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ROKU’s full-year earnings has moved 71.3% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
According to our latest data, ROKU has moved about 5.3% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -2.9% on a year-to-date basis. This means that Roku is outperforming the sector as a whole this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Super Group (SGHC – Free Report) Limited (SGHC – Free Report) . The stock has returned 9.6% year-to-date.
In Super Group (SGHC – Free Report) Limited’s case, the consensus EPS estimate for the current year increased 27.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Roku belongs to the Broadcast Radio and Television industry, a group that includes 19 individual stocks and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 7.4% so far this year, so ROKU is slightly underperforming its industry this group in terms of year-to-date returns.
Super Group (SGHC – Free Report) Limited, however, belongs to the Gaming industry. Currently, this 40-stock industry is ranked #154. The industry has moved -3.1% so far this year.
Roku and Super Group (SGHC – Free Report) Limited could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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