For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Diamondback Energy (FANG) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Diamondback Energy is one of 238 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Diamondback Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for FANG's full-year earnings has moved 115.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, FANG has moved about 33.5% on a year-to-date basis. Meanwhile, the Oils-Energy sector has returned an average of 30.8% on a year-to-date basis. This shows that Diamondback Energy is outperforming its peers so far this year.
Cenovus Energy (CVE) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 77.6%.
Over the past three months, Cenovus Energy's consensus EPS estimate for the current year has increased 165.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Diamondback Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #24 in the Zacks Industry Rank. On average, stocks in this group have gained 28.4% this year, meaning that FANG is performing better in terms of year-to-date returns.
In contrast, Cenovus Energy falls under the Oil and Gas - Integrated - Canadian industry. Currently, this industry has 4 stocks and is ranked #6. Since the beginning of the year, the industry has moved +61.4%.
Investors with an interest in Oils-Energy stocks should continue to track Diamondback Energy and Cenovus Energy. These stocks will be looking to continue their solid performance.
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Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).