For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. GSK (GSK) 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.
GSK is one of 1119 companies in the Medical group. The Medical group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. GSK is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GSK's full-year earnings has moved 3.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, GSK has gained about 0.1% so far this year. In comparison, Medical companies have returned an average of -1.8%. This shows that GSK is outperforming its peers so far this year.
Another stock in the Medical sector, Patterson Cos. (PDCO), has outperformed the sector so far this year. The stock's year-to-date return is 15.8%.
Over the past three months, Patterson Cos.'s consensus EPS estimate for the current year has increased 6.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, GSK is a member of the Medical - Biomedical and Genetics industry, which includes 537 individual companies and currently sits at #120 in the Zacks Industry Rank. This group has lost an average of 7.9% so far this year, so GSK is performing better in this area.
Patterson Cos. however, belongs to the Medical - Dental Supplies industry. Currently, this 17-stock industry is ranked #32. The industry has moved +15.5% so far this year.
Going forward, investors interested in Medical stocks should continue to pay close attention to GSK and Patterson Cos. as they could maintain their solid performance.
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
