When searching for strong Consumer Discretionary stocks, it is important to look for companies that are outperforming their peers. Netflix (NFLX) is one such stock that has shown strong performance this year compared to others in the Consumer Discretionary sector.
Netflix is among 286 individual stocks in the Consumer Discretionary sector and currently ranks at #15 in the Zacks Sector Rank. The Zacks Sector Rank evaluates the average Zacks Rank of individual stocks within a sector to determine the strength of each group.
With a Zacks Rank of #2 (Buy), Netflix is positioned well according to the successful stock-picking model that emphasizes earnings estimates and revisions. Analyst sentiment has improved for Netflix, as evidenced by a 7% increase in the Zacks Consensus Estimate for the company’s full-year earnings over the past three months.
Year-to-date, Netflix has gained approximately 18.7%, outperforming the average return of -2.9% for Consumer Discretionary companies. Another stock in the sector that has performed well this year is Paramount Global (PARAA), which has seen a return of 17.6% year-to-date and currently holds a Zacks Rank #1 (Strong Buy).
Netflix belongs to the Broadcast Radio and Television industry, which has seen an average gain of 5.3% so far this year. In comparison, Paramount Global falls under the Media Conglomerates industry, which has moved +16.6% since the beginning of the year.
Investors interested in Consumer Discretionary stocks may want to keep a close eye on Netflix and Paramount Global as they continue their solid performance.