The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Aveanna Healthcare (AVAH) one of those stocks right now? 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.
Aveanna Healthcare is one of 919 companies in the Medical group. The Medical group currently sits at #5 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. Aveanna Healthcare is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AVAH's full-year earnings has moved 19.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, AVAH has gained about 20.2% so far this year. At the same time, Medical stocks have gained an average of 1.7%. This means that Aveanna Healthcare is outperforming the sector as a whole this year.
Align Technology (ALGN) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.1%.
For Align Technology, the consensus EPS estimate for the current year has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aveanna Healthcare is a member of the Medical - Outpatient and Home Healthcare industry, which includes 14 individual companies and currently sits at #57 in the Zacks Industry Rank. Stocks in this group have gained about 18% so far this year, so AVAH is performing better this group in terms of year-to-date returns.
In contrast, Align Technology falls under the Medical - Dental Supplies industry. Currently, this industry has 14 stocks and is ranked #82. Since the beginning of the year, the industry has moved -2.2%.
Investors interested in the Medical sector may want to keep a close eye on Aveanna Healthcare and Align Technology as they attempt to continue their solid performance.
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Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).