For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Petrobras (PBR) 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? 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.
Petrobras is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Petrobras is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for PBR's full-year earnings has moved 100.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PBR has returned 67.9% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 30.7% on average. This means that Petrobras is outperforming the sector as a whole this year.
Helix Energy (HLX) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 60.8%.
In Helix Energy's case, the consensus EPS estimate for the current year increased 13.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Petrobras belongs to the Oil and Gas - Integrated - International industry, a group that includes 16 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 28.8% so far this year, meaning that PBR is performing better in terms of year-to-date returns.
On the other hand, Helix Energy belongs to the Oil and Gas - Field Services industry. This 19-stock industry is currently ranked #195. The industry has moved +47.2% year to date.
Investors with an interest in Oils-Energy stocks should continue to track Petrobras and Helix Energy. These stocks will be looking to continue their solid performance.
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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report
Helix Energy Solutions Group, Inc. (HLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).