Yahoo Finance Is Birkenstock Holding PLC (BIRK) Stock Outpacing Its Consumer Discretionary Peers This Year?
For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Birkenstock (BIRK) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Birkenstock is one of 281 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. 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 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. Birkenstock is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BIRK's full-year earnings has moved 6.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, BIRK has moved about 15.5% on a year-to-date basis. Meanwhile, the Consumer Discretionary sector has returned an average of -2.7% on a year-to-date basis. This means that Birkenstock is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is iPower Inc. (IPW). The stock is up 273.3% year-to-date.
Over the past three months, iPower Inc.'s consensus EPS estimate for the current year has increased 220%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Birkenstock belongs to the Shoes and Retail Apparel industry, a group that includes 12 individual companies and currently sits at #166 in the Zacks Industry Rank. On average, this group has lost an average of 27.6% so far this year, meaning that BIRK is performing better in terms of year-to-date returns.
In contrast, iPower Inc. falls under the Consumer Products - Discretionary industry. Currently, this industry has 25 stocks and is ranked #219. Since the beginning of the year, the industry has moved -2.1%.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Birkenstock and iPower Inc. as they attempt to continue their solid performance.
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