The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cardinal Health (CAH) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
Cardinal Health is a member of our Medical group, which includes 1010 different companies and currently sits at #5 in 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 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. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CAH's full-year earnings has moved 1.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CAH has returned 15.5% so far this year. Meanwhile, stocks in the Medical group have gained about 3.1% on average. This means that Cardinal Health is outperforming the sector as a whole this year.
Arcutis Biotherapeutics, Inc. (ARQT) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15.5%.
In Arcutis Biotherapeutics, Inc.'s case, the consensus EPS estimate for the current year increased 61.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cardinal Health is a member of the Medical - Dental Supplies industry, which includes 16 individual companies and currently sits at #79 in the Zacks Industry Rank. This group has gained an average of 1.7% so far this year, so CAH is performing better in this area.
In contrast, Arcutis Biotherapeutics, Inc. falls under the Medical - Biomedical and Genetics industry. Currently, this industry has 508 stocks and is ranked #71. Since the beginning of the year, the industry has moved +3.8%.
Investors interested in the Medical sector may want to keep a close eye on Cardinal Health and Arcutis Biotherapeutics, Inc. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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