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Is New Oriental Education & Technology Group (EDU) Outperforming Other Consumer Discretionary Stocks 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. Has New Oriental Education (EDU) 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.

New Oriental Education is a member of the Consumer Discretionary sector. This group includes 288 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. New Oriental Education is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for EDU's full-year earnings has moved 105.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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According to our latest data, EDU has moved about 5.5% on a year-to-date basis. Meanwhile, stocks in the Consumer Discretionary group have lost about 38% on average. As we can see, New Oriental Education is performing better than its sector in the calendar year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is BJ's Wholesale Club (BJ). The stock has returned 12% year-to-date.

Over the past three months, BJ's Wholesale Club's consensus EPS estimate for the current year has increased 8.9%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, New Oriental Education belongs to the Schools industry, which includes 19 individual stocks and currently sits at #208 in the Zacks Industry Rank. This group has lost an average of 13.1% so far this year, so EDU is performing better in this area.

On the other hand, BJ's Wholesale Club belongs to the Consumer Services - Miscellaneous industry. This 14-stock industry is currently ranked #91. The industry has moved -14.3% year to date.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to New Oriental Education and BJ's Wholesale Club as they could maintain their solid performance.


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New Oriental Education & Technology Group, Inc. (EDU) : Free Stock Analysis Report
 
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Zacks Investment Research