Are Medical Stocks Lagging Align Technology (ALGN) This Year?
For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Align Technology (ALGN) been one of those stocks this year? 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.
Align Technology is a member of the Medical sector. This group includes 1106 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Align Technology is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ALGN's full-year earnings has moved 6.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ALGN has returned 45.8% so far this year. Meanwhile, stocks in the Medical group have lost about 6.2% on average. This means that Align Technology is outperforming the sector as a whole this year.
Another Medical stock, which has outperformed the sector so far this year, is Aurinia Pharmaceuticals (AUPH). The stock has returned 82.4% year-to-date.
Over the past three months, Aurinia Pharmaceuticals' consensus EPS estimate for the current year has increased 18.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Align Technology belongs to the Medical - Dental Supplies industry, which includes 17 individual stocks and currently sits at #54 in the Zacks Industry Rank. On average, stocks in this group have gained 12.6% this year, meaning that ALGN is performing better in terms of year-to-date returns.
On the other hand, Aurinia Pharmaceuticals belongs to the Medical - Drugs industry. This 199-stock industry is currently ranked #96. The industry has moved -8.2% year to date.
Align Technology and Aurinia Pharmaceuticals could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
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