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Is Genesis Healthcare (GEN) Stock Outpacing Its Medical Peers This Year?

Zacks Equity Research

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Genesis Healthcare (GEN) 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? One simple way to answer this question is to take a look at the year-to-date performance of GEN and the rest of the Medical group's stocks.

Genesis Healthcare is one of 870 companies in the Medical group. The Medical group currently sits at #1 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. GEN is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for GEN's full-year earnings has moved 21.53% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, GEN has moved about 6.78% on a year-to-date basis. Meanwhile, stocks in the Medical group have gained about 5.93% on average. This means that Genesis Healthcare is performing better than its sector in terms of year-to-date returns.

To break things down more, GEN belongs to the Medical - Nursing Homes industry, a group that includes 5 individual companies and currently sits at #19 in the Zacks Industry Rank. Stocks in this group have gained about 30.22% so far this year, so GEN is slightly underperforming its industry this group in terms of year-to-date returns.

Investors in the Medical sector will want to keep a close eye on GEN as it attempts to continue its solid performance.


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