Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Encompass Health (EHC) 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.
Encompass Health is a member of the Medical sector. This group includes 1000 individual stocks and currently holds a Zacks Sector Rank of #3. 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. Encompass Health is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for EHC's full-year earnings has moved 0.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, EHC has gained about 4.1% so far this year. In comparison, Medical companies have returned an average of -7.4%. This means that Encompass Health is outperforming the sector as a whole this year.
Heron Therapeutics (HRTX) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 26.1%.
For Heron Therapeutics, the consensus EPS estimate for the current year has increased 100% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry, a group that includes 17 individual companies and currently sits at #19 in the Zacks Industry Rank. On average, this group has lost an average of 5.9% so far this year, meaning that EHC is performing better in terms of year-to-date returns.
In contrast, Heron Therapeutics falls under the Medical - Drugs industry. Currently, this industry has 162 stocks and is ranked #58. Since the beginning of the year, the industry has moved -7.4%.
Encompass Health and Heron Therapeutics could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
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Encompass Health Corporation (EHC): Free Stock Analysis Report Heron Therapeutics, Inc. (HRTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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