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Are Medical Stocks Lagging DexCom (DXCM) This Year?

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For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. DexCom (DXCM - Free Report) 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? Let's take a closer look at the stock's year-to-date performance to find out.

DexCom is a member of our Medical group, which includes 1067 different companies and currently sits at #4 in the Zacks Sector Rank. 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 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. DexCom is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DXCM's full-year earnings has moved 2.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DXCM has gained about 7.8% so far this year. At the same time, Medical stocks have gained an average of 7.2%. As we can see, DexCom is performing better than its sector in the calendar year.

Another stock in the Medical sector, Ambrx Biopharma Inc. , has outperformed the sector so far this year. The stock's year-to-date return is 96.6%.

Over the past three months, Ambrx Biopharma Inc.'s consensus EPS estimate for the current year has increased 1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DexCom belongs to the Medical - Instruments industry, which includes 91 individual stocks and currently sits at #65 in the Zacks Industry Rank. This group has gained an average of 8.4% so far this year, so DXCM is slightly underperforming its industry in this area.

In contrast, Ambrx Biopharma Inc. falls under the Medical - Biomedical and Genetics industry. Currently, this industry has 515 stocks and is ranked #78. Since the beginning of the year, the industry has moved +2.4%.

DexCom and Ambrx Biopharma 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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