Are Consumer Discretionary Stocks Lagging Capcom (CCOEY) This Year?

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Capcom Co., Ltd. (CCOEY) 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.

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Capcom Co., Ltd. is a member of the Consumer Discretionary sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #10. 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 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. Capcom Co., Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CCOEY's full-year earnings has moved 8.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CCOEY has returned about 41.7% since the start of the calendar year. At the same time, Consumer Discretionary stocks have gained an average of 12.8%. This shows that Capcom Co., Ltd. is outperforming its peers so far this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Roku (ROKU). The stock is up 18.7% year-to-date.

In Roku's case, the consensus EPS estimate for the current year increased 28.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Capcom Co., Ltd. belongs to the Gaming industry, which includes 39 individual stocks and currently sits at #151 in the Zacks Industry Rank. On average, this group has gained an average of 16.5% so far this year, meaning that CCOEY is performing better in terms of year-to-date returns.

Roku, however, belongs to the Broadcast Radio and Television industry. Currently, this 18-stock industry is ranked #69. The industry has moved +34.1% so far this year.

Investors with an interest in Consumer Discretionary stocks should continue to track Capcom Co., Ltd. and Roku. These stocks will be looking to continue their solid performance.

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

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