The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Delcath Systems, Inc. (DCTH) 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? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.
Delcath Systems, Inc. is one of 916 companies in the Medical group. The Medical group currently sits at #10 within the Zacks Sector Rank. 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. Delcath Systems, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DCTH's full-year earnings has moved 80.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, DCTH has gained about 62.8% so far this year. At the same time, Medical stocks have gained an average of 2.4%. This means that Delcath Systems, Inc. is outperforming the sector as a whole this year.
Another stock in the Medical sector, Encompass Health (EHC), has outperformed the sector so far this year. The stock's year-to-date return is 15.4%.
For Encompass Health, the consensus EPS estimate for the current year has increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Delcath Systems, Inc. belongs to the Medical - Instruments industry, a group that includes 78 individual stocks and currently sits at #101 in the Zacks Industry Rank. This group has lost an average of 9.6% so far this year, so DCTH is performing better in this area.
On the other hand, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry. This 14-stock industry is currently ranked #39. The industry has moved +23.8% year to date.
Delcath Systems, Inc. and Encompass Health could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).