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Is McKesson (MCK) Stock Outpacing Its Medical Peers This Year?

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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. Is McKesson (MCK - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

McKesson is one of 1182 companies in the Medical group. The Medical group currently sits at #3 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. McKesson is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for MCK's full-year earnings has moved 1.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, MCK has gained about 2.9% so far this year. Meanwhile, the Medical sector has returned an average of -15.3% on a year-to-date basis. This means that McKesson is performing better than its sector in terms of year-to-date returns.

One other Medical stock that has outperformed the sector so far this year is Doctor Reddy's (RDY - Free Report) . The stock is up 1.8% year-to-date.

The consensus estimate for Doctor Reddy's' current year EPS has increased 22.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, McKesson is a member of the Medical - Dental Supplies industry, which includes 18 individual companies and currently sits at #179 in the Zacks Industry Rank.


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