For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Bausch Health Cos (BHC - 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? 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.
Bausch Health Cos is a member of our Medical group, which includes 841 different companies and currently sits at #2 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 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. BHC is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BHC's full-year earnings has moved 10% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, BHC has returned 13.86% so far this year. In comparison, Medical companies have returned an average of 1.12%. As we can see, Bausch Health Cos is performing better than its sector in the calendar year.
Breaking things down more, BHC is a member of the Medical - Generic Drugs industry, which includes 23 individual companies and currently sits at #45 in the Zacks Industry Rank. On average, this group has lost an average of 11.90% so far this year, meaning that BHC is performing better in terms of year-to-date returns.
BHC will likely be looking to continue its solid performance, so investors interested in Medical stocks should continue to pay close attention to the company.