For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Arbutus Biopharma (ABUS) 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.
Arbutus Biopharma is one of 973 individual stocks in the Medical sector. Collectively, these companies sit at #8 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 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. Arbutus Biopharma is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ABUS' full-year earnings has moved 15.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ABUS has gained about 13.5% so far this year. Meanwhile, the Medical sector has returned an average of -2.3% on a year-to-date basis. This means that Arbutus Biopharma is performing better than its sector in terms of year-to-date returns.
One other Medical stock that has outperformed the sector so far this year is Armata Pharmaceuticals, Inc. (ARMP). The stock is up 35.1% year-to-date.
The consensus estimate for Armata Pharmaceuticals, Inc.'s current year EPS has increased 24.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Arbutus Biopharma is a member of the Medical - Biomedical and Genetics industry, which includes 486 individual companies and currently sits at #103 in the Zacks Industry Rank. Stocks in this group have gained about 2.7% so far this year, so ABUS is performing better this group in terms of year-to-date returns. Armata Pharmaceuticals, Inc. is also part of the same industry.
Investors with an interest in Medical stocks should continue to track Arbutus Biopharma and Armata Pharmaceuticals, Inc.. These stocks will be looking to continue their solid performance.
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Arbutus Biopharma Corporation (ABUS): Free Stock Analysis Report Armata Pharmaceuticals, Inc. (ARMP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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