The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CareDx (CDNA) 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.
CareDx is one of 1010 companies in the Medical group. The Medical group currently sits at #3 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. CareDx is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CDNA's full-year earnings has moved 36.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CDNA has returned about 6.7% since the start of the calendar year. Meanwhile, the Medical sector has returned an average of -0.6% on a year-to-date basis. This shows that CareDx is outperforming its peers so far this year.
One other Medical stock that has outperformed the sector so far this year is DaVita HealthCare (DVA). The stock is up 15.8% year-to-date.
For DaVita HealthCare, the consensus EPS estimate for the current year has increased 0.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, CareDx is a member of the Medical Services industry, which includes 59 individual companies and currently sits at #151 in the Zacks Industry Rank. On average, stocks in this group have lost 6.7% this year, meaning that CDNA is performing better in terms of year-to-date returns.
DaVita HealthCare, however, belongs to the Medical - Outpatient and Home Healthcare industry. Currently, this 18-stock industry is ranked #69. The industry has moved +16.9% so far this year.
Investors with an interest in Medical stocks should continue to track CareDx and DaVita HealthCare. These stocks will be looking to continue their solid performance.
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