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 Ecopetrol (EC) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Ecopetrol is one of 240 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 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 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. Ecopetrol is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for EC's full-year earnings has moved 47.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, EC has returned 37.3% so far this year. At the same time, Oils-Energy stocks have gained an average of 27.4%. This means that Ecopetrol is outperforming the sector as a whole this year.
Enerflex (EFXT) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.5%.
For Enerflex, the consensus EPS estimate for the current year has increased 22.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Ecopetrol is a member of the Oil and Gas - Integrated - International industry, which includes 16 individual companies and currently sits at #4 in the Zacks Industry Rank. This group has gained an average of 30.1% so far this year, so EC is performing better in this area.
Enerflex, however, belongs to the Alternative Energy - Other industry. Currently, this 51-stock industry is ranked #76. The industry has moved +19.5% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Ecopetrol and Enerflex as they could maintain their solid performance.
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Ecopetrol S.A. (EC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).