Is Butterfly Network (BFLY) Outperforming Other Medical Stocks 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 Butterfly Network, Inc. (BFLY) 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.

Butterfly Network, Inc. is one of 884 companies in the Medical group. The Medical group currently sits at #6 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Butterfly Network, Inc. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BFLY's full-year earnings has moved 21.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, BFLY has moved about 17.6% on a year-to-date basis. Meanwhile, the Medical sector has returned an average of -5.3% on a year-to-date basis. This means that Butterfly Network, Inc. is outperforming the sector as a whole this year.

American Well Corporation (AMWL) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 62.1%.

For American Well Corporation, the consensus EPS estimate for the current year has increased 6.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Butterfly Network, Inc. belongs to the Medical Info Systems industry, a group that includes 41 individual companies and currently sits at #96 in the Zacks Industry Rank. This group has lost an average of 23.9% so far this year, so BFLY is performing better in this area. American Well Corporation is also part of the same industry.

Butterfly Network, Inc. and American Well Corporation 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).

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