For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Cencora (COR) 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.
Cencora is one of 1073 individual stocks in the Medical sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Cencora is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for COR's full-year earnings has moved 4.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, COR has returned 14.4% so far this year. In comparison, Medical companies have returned an average of 5%. This means that Cencora is outperforming the sector as a whole this year.
Another stock in the Medical sector, Cigna (CI), has outperformed the sector so far this year. The stock's year-to-date return is 9.4%.
Over the past three months, Cigna's consensus EPS estimate for the current year has increased 0.4%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cencora is a member of the Medical Services industry, which includes 60 individual companies and currently sits at #170 in the Zacks Industry Rank. Stocks in this group have gained about 0.8% so far this year, so COR is performing better this group in terms of year-to-date returns.
On the other hand, Cigna belongs to the Medical - HMOs industry. This 8-stock industry is currently ranked #207. The industry has moved -2.5% year to date.
Going forward, investors interested in Medical stocks should continue to pay close attention to Cencora and Cigna as they could maintain their solid performance.
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