The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Thermo Fisher Scientific (TMO - 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? One simple way to answer this question is to take a look at the year-to-date performance of TMO and the rest of the Medical group's stocks.
Thermo Fisher Scientific is a member of the Medical sector. This group includes 844 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. TMO is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for TMO's full-year earnings has moved 0.42% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, TMO has returned 19.48% so far this year. At the same time, Medical stocks have gained an average of 1.88%. This means that Thermo Fisher Scientific is outperforming the sector as a whole this year.
To break things down more, TMO belongs to the Medical - Instruments industry, a group that includes 93 individual companies and currently sits at #151 in the Zacks Industry Rank. On average, stocks in this group have gained 8.27% this year, meaning that TMO is performing better in terms of year-to-date returns.
Investors in the Medical sector will want to keep a close eye on TMO as it attempts to continue its solid performance.