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Are Consumer Discretionary Stocks Lagging Netflix (NFLX) This Year?

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Netflix (NFLX) one of those stocks right now? 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.

Netflix is one of 286 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within 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. Netflix is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for NFLX's full-year earnings has moved 7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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Based on the latest available data, NFLX has gained about 18.7% so far this year. In comparison, Consumer Discretionary companies have returned an average of -2.9%. This means that Netflix is outperforming the sector as a whole this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Paramount Global (PARAA). The stock has returned 17.6% year-to-date.

The consensus estimate for Paramount Global's current year EPS has increased 1.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Netflix belongs to the Broadcast Radio and Television industry, which includes 20 individual stocks and currently sits at #233 in the Zacks Industry Rank. On average, this group has gained an average of 5.3% so far this year, meaning that NFLX is performing better in terms of year-to-date returns.

In contrast, Paramount Global falls under the Media Conglomerates industry. Currently, this industry has 13 stocks and is ranked #95. Since the beginning of the year, the industry has moved +16.6%.

Netflix and Paramount Global 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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Netflix, Inc. (NFLX) : Free Stock Analysis Report

Paramount Global (PARAA) : Free Stock Analysis Report

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Zacks Investment Research