Are Consumer Discretionary Stocks Lagging Nerdy (NRDY) This Year?

Zacks
04-25

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Nerdy Inc. (NRDY) been one of those stocks this year? 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.

Nerdy Inc. is one of 257 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #14 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 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. Nerdy Inc. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NRDY's full-year earnings has moved 0.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, NRDY has returned 1.2% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 5.3%. As we can see, Nerdy Inc. is performing better than its sector in the calendar year.

Another stock in the Consumer Discretionary sector, PIGEON CORP (PGENY), has outperformed the sector so far this year. The stock's year-to-date return is 48.4%.

In PIGEON CORP's case, the consensus EPS estimate for the current year increased 8.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Nerdy Inc. belongs to the Schools industry, a group that includes 17 individual companies and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have lost 3% this year, meaning that NRDY is performing better in terms of year-to-date returns.

PIGEON CORP, however, belongs to the Consumer Products - Discretionary industry. Currently, this 24-stock industry is ranked #216. The industry has moved -9.8% so far this year.

Nerdy Inc. and PIGEON CORP could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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