For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Avanos Medical (AVNS) 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.
Avanos Medical is one of 1187 companies in the Medical group. The Medical group currently sits at #12 within the Zacks Sector Rank. 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 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. Avanos Medical is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AVNS’ full-year earnings has moved 6.4% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, AVNS has moved about 0% on a year-to-date basis. Meanwhile, stocks in the Medical group have lost about 3.7% on average. This means that Avanos Medical is outperforming the sector as a whole this year.
Axcella Health Inc. (AXLA) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.5%.
Over the past three months, Axcella Health Inc.’s consensus EPS estimate for the current year has increased 12.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Avanos Medical belongs to the Medical – Instruments industry, which includes 105 individual stocks and currently sits at #168 in the Zacks Industry Rank. On average, stocks in this group have lost 9.6% this year, meaning that AVNS is performing better in terms of year-to-date returns.
In contrast, Axcella Health Inc. falls under the Medical – Biomedical and Genetics industry. Currently, this industry has 552 stocks and is ranked #169. Since the beginning of the year, the industry has moved -10.4%.
Investors interested in the Medical sector may want to keep a close eye on Avanos Medical and Axcella Health Inc. as they attempt to continue their solid performance.
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