Are Medical Stocks Lagging Abbott Laboratories (ABT) This Year?
Abbott is one of 985 companies in the Medical group. The Medical group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Abbott is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ABT's full-year earnings has moved 0% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ABT has moved about 6.5% on a year-to-date basis. Meanwhile, the Medical sector has returned an average of -5.7% on a year-to-date basis. This means that Abbott is outperforming the sector as a whole this year.
One other Medical stock that has outperformed the sector so far this year is Astellas Pharma Inc. (ALPMY). The stock is up 0.7% year-to-date.
For Astellas Pharma Inc., the consensus EPS estimate for the current year has increased 13.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Abbott belongs to the Medical - Products industry, a group that includes 84 individual stocks and currently sits at #169 in the Zacks Industry Rank. Stocks in this group have gained about 3% so far this year, so ABT is performing better this group in terms of year-to-date returns.
In contrast, Astellas Pharma Inc. falls under the Medical - Drugs industry. Currently, this industry has 155 stocks and is ranked #86. Since the beginning of the year, the industry has moved +6.6%.
Abbott and Astellas Pharma Inc. could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
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