Are Medical Stocks Lagging Bayer (BAYRY) 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. Bayer Aktiengesellschaft (BAYRY) 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.

Bayer Aktiengesellschaft is one of 915 companies in the Medical group. The Medical group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Bayer Aktiengesellschaft is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BAYRY's full-year earnings has moved 1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that BAYRY has returned about 40.7% since the start of the calendar year. In comparison, Medical companies have returned an average of 11.4%. This means that Bayer Aktiengesellschaft is performing better than its sector in terms of year-to-date returns.

Another stock in the Medical sector, Encompass Health (EHC), has outperformed the sector so far this year. The stock's year-to-date return is 32.9%.

Over the past three months, Encompass Health's consensus EPS estimate for the current year has increased 3.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Bayer Aktiengesellschaft belongs to the Large Cap Pharmaceuticals industry, a group that includes 11 individual stocks and currently sits at #110 in the Zacks Industry Rank. On average, stocks in this group have gained 25.9% this year, meaning that BAYRY is performing better in terms of year-to-date returns.

On the other hand, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry. This 14-stock industry is currently ranked #94. The industry has moved +34% year to date.

Bayer Aktiengesellschaft and Encompass Health could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.