Investors focused on the Consumer Discretionary space have likely heard of Zynga (ZNGA), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of ZNGA and the rest of the Consumer Discretionary group's stocks.
Zynga is one of 250 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #8 in 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 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. ZNGA is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ZNGA's full-year earnings has moved 32% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ZNGA has returned 23.16% so far this year. In comparison, Consumer Discretionary companies have returned an average of 10.66%. This shows that Zynga is outperforming its peers so far this year.
To break things down more, ZNGA belongs to the Gaming industry, a group that includes 20 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, this group has gained an average of 19.40% so far this year, meaning that ZNGA is performing better in terms of year-to-date returns.
Investors in the Consumer Discretionary sector will want to keep a close eye on ZNGA as it attempts to continue its solid performance.
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