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Are Medical Stocks Lagging Encompass Health (EHC) This Year?

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Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Encompass Health (EHC - 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.

Encompass Health is one of 985 individual stocks in the Medical sector. Collectively, these companies sit at #7 in 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 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. Encompass Health is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EHC's full-year earnings has moved 4.6% higher. 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 19.1% since the start of the calendar year. Meanwhile, stocks in the Medical group have lost about 6.9% on average. 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 - Free Report) . The stock is up 21.2% year-to-date.

The consensus estimate for Elanco Animal Health Incorporated's current year EPS has increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry, a group that includes 17 individual companies and currently sits at #52 in the Zacks Industry Rank. On average, this group has lost an average of 1.4% so far this year, meaning that EHC is performing better in terms of year-to-date returns. Elanco Animal Health Incorporated is also part of the same industry.

Investors with an interest in Medical stocks should continue to track Encompass Health and Elanco Animal Health Incorporated. These stocks will be looking to continue their solid performance.


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