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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 Norwegian Cruise Line (NCLH) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Norwegian Cruise Line is a member of the Consumer Discretionary sector. This group includes 272 individual stocks and currently holds a Zacks Sector Rank of #6. 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. Norwegian Cruise Line is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for NCLH's full-year earnings has moved 9.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, NCLH has returned 31.7% so far this year. At the same time, Consumer Discretionary stocks have gained an average of 15.1%. This means that Norwegian Cruise Line is outperforming the sector as a whole this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Adidas AG (ADDYY). The stock has returned 24.7% year-to-date.
Over the past three months, Adidas AG's consensus EPS estimate for the current year has increased 13.5%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Norwegian Cruise Line is a member of the Leisure and Recreation Services industry, which includes 32 individual companies and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 23.4% so far this year, so NCLH is performing better in this area.
On the other hand, Adidas AG belongs to the Shoes and Retail Apparel industry. This 11-stock industry is currently ranked #38. The industry has moved -22.9% year to date.
Norwegian Cruise Line and Adidas AG 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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