For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Akebia Therapeutics (AKBA) 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? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.
Akebia Therapeutics is a member of the Medical sector. This group includes 986 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Akebia Therapeutics is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AKBA's full-year earnings has moved 65.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AKBA has returned about 104.2% since the start of the calendar year. In comparison, Medical companies have returned an average of -5.7%. This means that Akebia Therapeutics is outperforming the sector as a whole this year.
Another Medical stock, which has outperformed the sector so far this year, is ResMed (RMD). The stock has returned 10.2% year-to-date.
For ResMed, the consensus EPS estimate for the current year has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Akebia Therapeutics is a member of the Medical - Drugs industry, which includes 155 individual companies and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have gained 4.1% this year, meaning that AKBA is performing better in terms of year-to-date returns.
In contrast, ResMed falls under the Medical - Products industry. Currently, this industry has 84 stocks and is ranked #166. Since the beginning of the year, the industry has moved +4.8%.
Investors with an interest in Medical stocks should continue to track Akebia Therapeutics and ResMed. These stocks will be looking to continue their solid performance.
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Akebia Therapeutics, Inc. (AKBA): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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