For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Marathon Petroleum (MPC) 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.
Marathon Petroleum is one of 250 companies in the Oils-Energy group. The Oils-Energy group currently sits at #3 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. Marathon Petroleum is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for MPC's full-year earnings has moved 79.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, MPC has returned 141.1% so far this year. In comparison, Oils-Energy companies have returned an average of 28.1%. This means that Marathon Petroleum is outperforming the sector as a whole this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Imperial Oil (IMO). The stock is up 41.2% year-to-date.
In Imperial Oil's case, the consensus EPS estimate for the current year increased 8.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Marathon Petroleum belongs to the Oil and Gas - Refining and Marketing industry, a group that includes 16 individual companies and currently sits at #23 in the Zacks Industry Rank. On average, this group has gained an average of 122.6% so far this year, meaning that MPC is performing better in terms of year-to-date returns.
On the other hand, Imperial Oil belongs to the Oil and Gas - Integrated - Canadian industry. This 4-stock industry is currently ranked #7. The industry has moved +63.8% year to date.
Investors interested in the Oils-Energy sector may want to keep a close eye on Marathon Petroleum and Imperial Oil as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).