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Is Encompass Health (EHC) Stock Outpacing Its Medical Peers This Year?

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Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Encompass Health (EHC - Free Report) 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.

Encompass Health is a member of the Medical sector. This group includes 1110 individual stocks and currently holds a Zacks Sector Rank of #6. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Encompass Health is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for EHC's full-year earnings has moved 8.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, EHC has returned 15.2% so far this year. Meanwhile, the Medical sector has returned an average of -4.5% on a year-to-date basis. As we can see, Encompass Health is performing better than its sector in the calendar year.

Eton Pharmaceuticals, Inc. (ETON - Free Report) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 58.2%.

In Eton Pharmaceuticals, Inc.'s case, the consensus EPS estimate for the current year increased 68.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Encompass Health belongs to the Medical - Outpatient and Home Healthcare industry, a group that includes 17 individual companies and currently sits at #27 in the Zacks Industry Rank. On average, stocks in this group have lost 3.8% this year, meaning that EHC is performing better in terms of year-to-date returns.

In contrast, Eton Pharmaceuticals, Inc. falls under the Medical - Biomedical and Genetics industry. Currently, this industry has 533 stocks and is ranked #97. Since the beginning of the year, the industry has moved -13.4%.

Encompass Health and Eton Pharmaceuticals, Inc. could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.


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