For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Thermo Fisher Scientific (TMO) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Thermo Fisher Scientific is one of 1116 companies in the Medical group. The Medical group currently sits at #13 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. Thermo Fisher Scientific is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for TMO's full-year earnings has moved 6% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that TMO has returned about 34.4% since the start of the calendar year. In comparison, Medical companies have returned an average of -10.2%. As we can see, Thermo Fisher Scientific is performing better than its sector in the calendar year.
Another stock in the Medical sector, West Pharmaceutical Services (WST), has outperformed the sector so far this year. The stock's year-to-date return is 53.7%.
The consensus estimate for West Pharmaceutical Services' current year EPS has increased 2.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Thermo Fisher Scientific belongs to the Medical - Instruments industry, a group that includes 101 individual companies and currently sits at #186 in the Zacks Industry Rank. On average, stocks in this group have gained 2.8% this year, meaning that TMO is performing better in terms of year-to-date returns.
West Pharmaceutical Services, however, belongs to the Medical - Dental Supplies industry. Currently, this 21-stock industry is ranked #108. The industry has moved +7.5% so far this year.
Going forward, investors interested in Medical stocks should continue to pay close attention to Thermo Fisher Scientific and West Pharmaceutical Services as they could maintain their solid performance.
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