For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Valero Energy (VLO) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Valero Energy is one of 238 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. Valero Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for VLO's full-year earnings has moved 110.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, VLO has gained about 51.8% so far this year. At the same time, Oils-Energy stocks have gained an average of 21.9%. This shows that Valero Energy is outperforming its peers so far this year.
Natural Gas Services (NGS) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24%.
For Natural Gas Services, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Valero Energy is a member of the Oil and Gas - Refining and Marketing industry, which includes 17 individual companies and currently sits at #15 in the Zacks Industry Rank. On average, stocks in this group have gained 38.2% this year, meaning that VLO is performing better in terms of year-to-date returns.
On the other hand, Natural Gas Services belongs to the Oil and Gas - Mechanical and and Equipment industry. This 11-stock industry is currently ranked #109. The industry has moved +34% year to date.
Valero Energy and Natural Gas Services could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.
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Valero Energy Corporation (VLO): Free Stock Analysis Report
Natural Gas Services Group, Inc. (NGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).