Are Medical Stocks Lagging Brainsway (BWAY) This Year?

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Brainsway Ltd. Sponsored ADR (BWAY) 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.

Brainsway Ltd. Sponsored ADR is a member of our Medical group, which includes 998 different companies and currently sits at #6 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Brainsway Ltd. Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BWAY's full-year earnings has moved 13% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, BWAY has moved about 17% on a year-to-date basis. Meanwhile, stocks in the Medical group have lost about 4.9% on average. This means that Brainsway Ltd. Sponsored ADR is outperforming the sector as a whole this year.

Another stock in the Medical sector, Cardinal Health (CAH), has outperformed the sector so far this year. The stock's year-to-date return is 39.9%.

The consensus estimate for Cardinal Health's current year EPS has increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Brainsway Ltd. Sponsored ADR belongs to the Medical - Products industry, a group that includes 83 individual companies and currently sits at #153 in the Zacks Industry Rank. On average, this group has gained an average of 3.7% so far this year, meaning that BWAY is performing better in terms of year-to-date returns.

In contrast, Cardinal Health falls under the Medical - Dental Supplies industry. Currently, this industry has 14 stocks and is ranked #29. Since the beginning of the year, the industry has moved -0.9%.

Investors with an interest in Medical stocks should continue to track Brainsway Ltd. Sponsored ADR and Cardinal Health. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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