Is Accel Entertainment (ACEL) Stock Outpacing Its Consumer Discretionary Peers This Year?

Accel Entertainment (ACEL), with a Zacks Rank #2 (Buy), is outperforming its consumer discretionary peers, yielding a 5.3% return year-to-date compared to the sector's 3.8% average; analysts' full-year earnings estimates for ACEL have increased by 8% in the past quarter. Sendas Distribuidora S.A. Sponsored ADR (ASAIY) is another consumer discretionary stock outperforming the sector with a 126% year-to-date return, driven by a 14.8% increase in consensus EPS estimates over the last three months and also holds a Zacks Rank #2 (Buy).

Analysis

Accel Entertainment (ACEL) is demonstrating notable strength within the Consumer Discretionary sector, outperforming its peers with a year-to-date return of 5.3% against the sector's average gain of 3.8%. This performance is further underscored by its superior return compared to its specific Gaming industry, which has seen an average gain of only 0.7% year-to-date. A key driver for this positive outlook is the 8% upward revision in ACEL's full-year consensus earnings estimates over the past quarter, reflecting improving analyst sentiment and a more robust earnings outlook. Consequently, ACEL currently holds a Zacks Rank #2 (Buy), indicating expectations of market outperformance in the near term (one to three months). Similarly, Sendas Distribuidora S.A. Sponsored ADR (ASAIY), another stock in the Consumer Discretionary sector, has exhibited exceptional performance, surging 126% year-to-date. ASAIY's consensus EPS estimate for the current year has increased by 14.8% over the past three months, and it also carries a Zacks Rank #2 (Buy). This is particularly significant as its underlying Consumer Products - Discretionary industry has declined by 8.3% year-to-date, highlighting ASAIY's strong individual fundamental drivers.

Key Decisions for Investors

• Investors seeking exposure to the Consumer Discretionary sector should consider Accel Entertainment, given its positive earnings estimate revisions and demonstrated outperformance relative to both its broader sector and specific industry.
• The significant upward revision in earnings estimates and strong year-to-date performance of Sendas Distribuidora S.A. Sponsored ADR, coupled with its Zacks Rank #2 (Buy), warrant attention, especially considering the underperformance of its industry.
• Monitor both ACEL and ASAIY for sustained momentum, as their current Zacks Ranks and positive estimate trends suggest potential for continued market outperformance over the next one to three months.