The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. MGM Resorts (MGM) 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.
MGM Resorts is one of 274 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. MGM Resorts is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for MGM's full-year earnings has moved 655.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, MGM has moved about 18.8% on a year-to-date basis. Meanwhile, stocks in the Consumer Discretionary group have gained about 4.9% on average. This means that MGM Resorts is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Bluegreen Vacations Holding Corporation (BVH), has outperformed the sector so far this year. The stock's year-to-date return is 19.2%.
For Bluegreen Vacations Holding Corporation, the consensus EPS estimate for the current year has increased 9.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, MGM Resorts is a member of the Gaming industry, which includes 38 individual companies and currently sits at #77 in the Zacks Industry Rank. This group has gained an average of 19.7% so far this year, so MGM is slightly underperforming its industry in this area.
Bluegreen Vacations Holding Corporation, however, belongs to the Leisure and Recreation Services industry. Currently, this 33-stock industry is ranked #56. The industry has moved +14.3% so far this year.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to MGM Resorts and Bluegreen Vacations Holding Corporation as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report