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 Sunoco LP (SUN) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Sunoco LP is one of 252 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Sunoco LP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SUN's full-year earnings has moved 24.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, SUN has gained about 44% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 29.1% on average. This means that Sunoco LP is outperforming the sector as a whole this year.
Another stock in the Oils-Energy sector, Talos Energy (TALO), has outperformed the sector so far this year. The stock's year-to-date return is 51.8%.
In Talos Energy's case, the consensus EPS estimate for the current year increased 239.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Sunoco LP belongs to the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, a group that includes 7 individual stocks and currently sits at #6 in the Zacks Industry Rank. On average, stocks in this group have gained 43.3% this year, meaning that SUN is performing better in terms of year-to-date returns.
On the other hand, Talos Energy belongs to the Oil and Gas - Exploration and Production - United States industry. This 34-stock industry is currently ranked #198. The industry has moved +31.3% year to date.
Investors with an interest in Oils-Energy stocks should continue to track Sunoco LP and Talos Energy. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).