Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Has SM Energy (SM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
SM 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 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. SM Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for SM's full-year earnings has moved 102.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that SM has returned about 64% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 28.3% on a year-to-date basis. This means that SM Energy is outperforming the sector as a whole this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Meren Energy (MRNFF). The stock is up 31.5% year-to-date.
The consensus estimate for Meren Energy's current year EPS has increased 62.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, SM Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #11 in the Zacks Industry Rank. Stocks in this group have gained about 24% so far this year, so SM is performing better this group in terms of year-to-date returns.
In contrast, Meren Energy falls under the Alternative Energy - Other industry. Currently, this industry has 50 stocks and is ranked #81. Since the beginning of the year, the industry has moved +23.7%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to SM Energy and Meren Energy as they could maintain their solid performance.
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SM Energy Company (SM): Free Stock Analysis Report
Meren Energy Inc. (MRNFF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).