Is Caesars Entertainment (CZR) Outperforming Other Consumer Discretionary Stocks 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. Caesars Entertainment (CZR) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.
Caesars Entertainment is one of 280 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 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 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. Caesars Entertainment is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CZR's full-year earnings has moved 19.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CZR has returned about 8.6% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of 8.2% on a year-to-date basis. As we can see, Caesars Entertainment is performing better than its sector in the calendar year.
PVH (PVH) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 20.7%.
In PVH's case, the consensus EPS estimate for the current year increased 8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Caesars Entertainment belongs to the Leisure and Recreation Services industry, a group that includes 32 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 8.2% so far this year, so CZR is performing better this group in terms of year-to-date returns.
PVH, however, belongs to the Textile - Apparel industry. Currently, this 19-stock industry is ranked #149. The industry has moved +6.3% so far this year.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to Caesars Entertainment and PVH as they could maintain their solid performance.
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