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Are Consumer Discretionary Stocks Lagging Bowlero (BOWL) This Year?

Zacks Equity Research
·2-min read

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bowlero Corp. (BOWL) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Bowlero Corp. is one of 290 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 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 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. Bowlero Corp. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BOWL's full-year earnings has moved 16.7% 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, BOWL has gained about 27.9% so far this year. In comparison, Consumer Discretionary companies have returned an average of -33.5%. This means that Bowlero Corp. is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Virco Manufacturing Corporation (VIRC). The stock is up 18.9% year-to-date.

The consensus estimate for Virco Manufacturing Corporation's current year EPS has increased 34.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Bowlero Corp. belongs to the Leisure and Recreation Services industry, a group that includes 32 individual companies and currently sits at #90 in the Zacks Industry Rank. This group has lost an average of 38.2% so far this year, so BOWL is performing better in this area.

In contrast, Virco Manufacturing Corporation falls under the Furniture industry. Currently, this industry has 8 stocks and is ranked #238. Since the beginning of the year, the industry has moved -22.1%.

Investors with an interest in Consumer Discretionary stocks should continue to track Bowlero Corp. and Virco Manufacturing Corporation. These stocks will be looking to continue their solid performance.


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Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
 
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Zacks Investment Research