Is Crocs (CROX) Stock Outpacing Its Consumer Discretionary Peers This Year?

·2-min read

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Crocs (CROX) 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.

Crocs is a member of the Consumer Discretionary sector. This group includes 280 individual stocks and currently holds a Zacks Sector Rank of #11. 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 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. Crocs is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CROX's full-year earnings has moved 5.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, CROX has gained about 9.2% so far this year. In comparison, Consumer Discretionary companies have returned an average of 5.7%. This means that Crocs is outperforming the sector as a whole this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Netflix (NFLX). The stock has returned 11.4% year-to-date.

For Netflix, the consensus EPS estimate for the current year has increased 5.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Crocs belongs to the Textile - Apparel industry, a group that includes 19 individual companies and currently sits at #146 in the Zacks Industry Rank. This group has lost an average of 2.5% so far this year, so CROX is performing better in this area.

In contrast, Netflix falls under the Broadcast Radio and Television industry. Currently, this industry has 23 stocks and is ranked #189. Since the beginning of the year, the industry has moved +8.1%.

Crocs and Netflix 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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