Is American Well (AMWL) Stock Outpacing Its Medical Peers This Year?

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. American Well Corporation (AMWL) 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.

American Well Corporation is a member of the Medical sector. This group includes 926 individual stocks and currently holds a Zacks Sector Rank of #9. 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. American Well Corporation is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AMWL's full-year earnings has moved 36.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, AMWL has gained about 14.3% so far this year. Meanwhile, stocks in the Medical group have lost about 1% on average. This means that American Well Corporation is performing better than its sector in terms of year-to-date returns.

Catalyst Pharmaceutical (CPRX) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 4.2%.

In Catalyst Pharmaceutical's case, the consensus EPS estimate for the current year increased 13% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, American Well Corporation belongs to the Medical Info Systems industry, which includes 42 individual stocks and currently sits at #138 in the Zacks Industry Rank. On average, this group has lost an average of 18% so far this year, meaning that AMWL is performing better in terms of year-to-date returns.

Catalyst Pharmaceutical, however, belongs to the Medical - Drugs industry. Currently, this 143-stock industry is ranked #93. The industry has moved -2.7% so far this year.

Investors with an interest in Medical stocks should continue to track American Well Corporation and Catalyst Pharmaceutical. These stocks will be looking to continue their solid performance.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

American Well Corporation (AMWL): Free Stock Analysis Report

Catalyst Pharmaceuticals, Inc. (CPRX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research