The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Align Technology (ALGN) 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.
Align Technology is one of 884 individual stocks in the Medical sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. 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 3.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ALGN has moved about 4.4% on a year-to-date basis. Meanwhile, the Medical sector has returned an average of -5.9% on a year-to-date basis. This means that Align Technology is performing better than its sector in terms of year-to-date returns.
One other Medical stock that has outperformed the sector so far this year is Carlsmed, Inc. (CARL). The stock is up 2.4% year-to-date.
For Carlsmed, Inc., the consensus EPS estimate for the current year has increased 21.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Align Technology belongs to the Medical - Dental Supplies industry, a group that includes 13 individual companies and currently sits at #65 in the Zacks Industry Rank. On average, stocks in this group have lost 8.4% this year, meaning that ALGN is performing better in terms of year-to-date returns.
In contrast, Carlsmed, Inc. falls under the Medical Info Systems industry. Currently, this industry has 41 stocks and is ranked #94. Since the beginning of the year, the industry has moved -24.1%.
Going forward, investors interested in Medical stocks should continue to pay close attention to Align Technology and Carlsmed, Inc. as they could maintain their solid performance.
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Align Technology, Inc. (ALGN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).