For those looking for strong stocks in the consumer discretionary sector, it is prudent to look for companies in the group that are outperforming their peers. Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) is a stock that can certainly catch the attention of many investors, but do its recent returns compare favorably to the industry as a whole? A quick look at the company’s year-to-date performance relative to the rest of the consumer discretionary sector should help us answer this question.
Atour Lifestyle Holdings Limited Sponsored ADR is a member of the Consumer Discretionary sector. This group includes 272 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of individual stocks in the sector to gauge the strength of each group.
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. Atour Lifestyle Holdings Limited Sponsored ADR currently sports a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ATAT’s full-year earnings has increased 1.6% over the past quarter. This means analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, ATAT has gained approximately 52.6% so far this year. Meanwhile, stocks in the consumer discretionary group gained about 18.2% on average. As we can see, Atour Lifestyle Holdings Limited Sponsored ADR is performing better than its sector during the calendar year.
Fox Corporation (FOX) is another consumer discretionary stock that has outperformed the sector so far this year. Year to date, the stock has returned 61.5%.
Fox Corporation’s consensus EPS estimate for the current year has increased 9.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down further, Atour Lifestyle Holdings Limited Sponsored ADR belongs to the Leisure & Leisure Services industry, a group that includes 32 individual companies and currently sits at #21 in the Zacks Industry Rank. Stocks in this group have gained about 25% so far this year, so ATAT is performing better in this group in terms of year-to-date returns.
On the other hand, Fox Corporation falls under the radio and television broadcasting sector. Currently, this industry has 19 stocks and is ranked 75th. Since the start of the year, the industry has grown by +59.1%.