Are Medical Stocks Lagging Align Technology (ALGN) 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. Has Align Technology (ALGN) been one of those stocks this year? 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.

Align Technology is a member of our Medical group, which includes 925 different companies and currently sits at #10 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Align Technology is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ALGN's full-year earnings has moved 3.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ALGN has moved about 8.5% on a year-to-date basis. In comparison, Medical companies have returned an average of -1.4%. This means that Align Technology is outperforming the sector as a whole this year.

Biofrontera Inc. (BFRI) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 45.6%.

The consensus estimate for Biofrontera Inc.'s current year EPS has increased 300% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Align Technology belongs to the Medical - Dental Supplies industry, which includes 15 individual stocks and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 1% so far this year, so ALGN is performing better this group in terms of year-to-date returns.

On the other hand, Biofrontera Inc. belongs to the Medical - Biomedical and Genetics industry. This 444-stock industry is currently ranked #144. The industry has moved +6.4% year to date.

Investors interested in the Medical sector may want to keep a close eye on Align Technology and Biofrontera Inc. as they attempt to continue their solid performance.

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

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