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Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has BJ's Wholesale Club (BJ) 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.
BJ's Wholesale Club is a member of the Consumer Discretionary sector. This group includes 265 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. BJ's Wholesale Club is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BJ's full-year earnings has moved 0% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, BJ has returned 18.6% so far this year. In comparison, Consumer Discretionary companies have returned an average of 8.7%. This means that BJ's Wholesale Club is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Peloton (PTON), has outperformed the sector so far this year. The stock's year-to-date return is 12.3%.
For Peloton, the consensus EPS estimate for the current year has increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, BJ's Wholesale Club is a member of the Consumer Services - Miscellaneous industry, which includes 8 individual companies and currently sits at #180 in the Zacks Industry Rank. Stocks in this group have gained about 7.1% so far this year, so BJ is performing better this group in terms of year-to-date returns.
Peloton, however, belongs to the Leisure and Recreation Products industry. Currently, this 23-stock industry is ranked #137. The industry has moved +10% so far this year.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to BJ's Wholesale Club and Peloton as they could maintain their solid performance.
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