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The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Cassava Sciences, Inc. (SAVA) 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.
Cassava Sciences, Inc. is one of 1024 companies in the Medical group. The Medical group currently sits at #3 within 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. Cassava Sciences, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SAVA's full-year earnings has moved 36.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, SAVA has returned 16.1% so far this year. In comparison, Medical companies have returned an average of 0.8%. This shows that Cassava Sciences, Inc. is outperforming its peers so far this year.
One other Medical stock that has outperformed the sector so far this year is biote Corp. (BTMD). The stock is up 33% year-to-date.
In biote Corp.'s case, the consensus EPS estimate for the current year increased 61.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cassava Sciences, Inc. is a member of the Medical - Drugs industry, which includes 171 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, this group has lost an average of 3.7% so far this year, meaning that SAVA is performing better in terms of year-to-date returns.
In contrast, biote Corp. falls under the Medical - Products industry. Currently, this industry has 87 stocks and is ranked #82. Since the beginning of the year, the industry has moved +12.8%.
Investors interested in the Medical sector may want to keep a close eye on Cassava Sciences, Inc. and biote Corp. as they attempt to continue their solid performance.
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