For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Life Time Group Holdings, Inc. (LTH) 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.
Life Time Group Holdings, Inc. is a member of the Consumer Discretionary sector. This group includes 268 individual stocks and currently holds a Zacks Sector Rank of #11. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Life Time Group Holdings, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for LTH's full-year earnings has moved 32.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, LTH has gained about 40% so far this year. In comparison, Consumer Discretionary companies have returned an average of -2.2%. This means that Life Time Group Holdings, Inc. is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Mattel (MAT). The stock is up 13.5% year-to-date.
For Mattel, the consensus EPS estimate for the current year has increased 6.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Life Time Group Holdings, Inc. belongs to the Leisure and Recreation Services industry, a group that includes 31 individual stocks and currently sits at #55 in the Zacks Industry Rank. This group has lost an average of 7.3% so far this year, so LTH is performing better in this area.
On the other hand, Mattel belongs to the Toys - Games - Hobbies industry. This 4-stock industry is currently ranked #26. The industry has moved +48.3% year to date.
Investors with an interest in Consumer Discretionary stocks should continue to track Life Time Group Holdings, Inc. and Mattel. These stocks will be looking to continue their solid performance.
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Life Time Group Holdings, Inc. (LTH) : Free Stock Analysis Report
Mattel, Inc. (MAT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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