For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. argenex SE (ARGX) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
argenex SE is one of 972 individual stocks in the Medical sector. Collectively, these companies sit at #7 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 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. argenex SE is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ARGX's full-year earnings has moved 23.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ARGX has gained about 20.3% so far this year. Meanwhile, the Medical sector has returned an average of -1.8% on a year-to-date basis. This means that argenex SE is outperforming the sector as a whole this year.
Another stock in the Medical sector, Collegium Pharmaceutical (COLL), has outperformed the sector so far this year. The stock's year-to-date return is 24.4%.
In Collegium Pharmaceutical's case, the consensus EPS estimate for the current year increased 1.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, argenex SE is a member of the Medical - Biomedical and Genetics industry, which includes 483 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 4.3% this year, meaning that ARGX is performing better in terms of year-to-date returns.
On the other hand, Collegium Pharmaceutical belongs to the Medical - Drugs industry. This 155-stock industry is currently ranked #145. The industry has moved +11.7% year to date.
Investors with an interest in Medical stocks should continue to track argenex SE and Collegium Pharmaceutical. These stocks will be looking to continue their solid performance.
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argenex SE (ARGX): Free Stock Analysis Report Collegium Pharmaceutical, Inc. (COLL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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