Is Flexsteel Industries (FLXS) Stock Outpacing Its Consumer Discretionary Peers 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 Flexsteel Industries (FLXS) 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.

Flexsteel Industries is one of 260 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #8 within 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. Flexsteel Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for FLXS' full-year earnings has moved 25.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FLXS has returned 98% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 5.9% on average. This means that Flexsteel Industries is performing better than its sector in terms of year-to-date returns.

Another stock in the Consumer Discretionary sector, H World Group (HTHT), has outperformed the sector so far this year. The stock's year-to-date return is 3.3%.

For H World Group, the consensus EPS estimate for the current year has increased 6.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Flexsteel Industries belongs to the Furniture industry, a group that includes 7 individual companies and currently sits at #33 in the Zacks Industry Rank. Stocks in this group have lost about 3.9% so far this year, so FLXS is performing better this group in terms of year-to-date returns.

H World Group, however, belongs to the Hotels and Motels industry. Currently, this 15-stock industry is ranked #174. The industry has moved +13.2% so far this year.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Flexsteel Industries and H World Group as they attempt to continue their solid performance.

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

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