Is Encompass Health (EHC) 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. Encompass Health (EHC) 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? 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.
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Encompass Health is a member of the Medical sector. This group includes 998 individual stocks and currently holds a Zacks Sector Rank of #6. 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. Encompass Health is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for EHC's full-year earnings has moved 4.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that EHC has returned about 30.3% since the start of the calendar year. At the same time, Medical stocks have lost an average of 3.5%. This shows that Encompass Health is outperforming its peers so far this year.
One other Medical stock that has outperformed the sector so far this year is Elanco Animal Health Incorporated (ELAN). The stock is up 15% year-to-date.
Over the past three months, Elanco Animal Health Incorporated's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry, which includes 17 individual stocks and currently sits at #39 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so EHC is performing better in this area. Elanco Animal Health Incorporated is also part of the same industry.
Investors interested in the Medical sector may want to keep a close eye on Encompass Health and Elanco Animal Health Incorporated as they attempt to continue their solid performance.
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