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Is McKesson (MCK) Outperforming Other Medical Stocks This Year?

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For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. McKesson (MCK - Free Report) 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.

McKesson is a member of the Medical sector. This group includes 999 individual stocks and currently holds a Zacks Sector Rank of #4. 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. McKesson is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for MCK's full-year earnings has moved 1.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that MCK has returned about 26.6% since the start of the calendar year. Meanwhile, stocks in the Medical group have lost about 4.9% on average. This means that McKesson is performing better than its sector in terms of year-to-date returns.

Another stock in the Medical sector, Adagene Inc. Sponsored ADR (ADAG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 4.8%.

In Adagene Inc. Sponsored ADR's case, the consensus EPS estimate for the current year increased 7.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, McKesson belongs to the Medical - Dental Supplies industry, a group that includes 14 individual companies and currently sits at #84 in the Zacks Industry Rank. Stocks in this group have lost about 1.9% so far this year, so MCK is performing better this group in terms of year-to-date returns.

In contrast, Adagene Inc. Sponsored ADR falls under the Medical - Biomedical and Genetics industry. Currently, this industry has 503 stocks and is ranked #75. Since the beginning of the year, the industry has moved -2.9%.

Investors interested in the Medical sector may want to keep a close eye on McKesson and Adagene Inc. Sponsored ADR as they attempt to continue their solid performance.


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