For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. BP (BP) 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.
BP is a member of our Oils-Energy group, which includes 240 different companies and currently sits at #1 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BP is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BP's full-year earnings has moved 93.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, BP has returned 33.5% so far this year. In comparison, Oils-Energy companies have returned an average of 29.2%. As we can see, BP is performing better than its sector in the calendar year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Drilling Tools International Corp. (DTI). The stock has returned 30.6% year-to-date.
The consensus estimate for Drilling Tools International Corp.'s current year EPS has increased 26.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, BP belongs to the Oil and Gas - Integrated - International industry, a group that includes 16 individual companies and currently sits at #3 in the Zacks Industry Rank. This group has gained an average of 28.5% so far this year, so BP is performing better in this area.
In contrast, Drilling Tools International Corp. falls under the Oil and Gas - Field Services industry. Currently, this industry has 19 stocks and is ranked #57. Since the beginning of the year, the industry has moved +50.1%.
Investors interested in the Oils-Energy sector may want to keep a close eye on BP and Drilling Tools International Corp. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).