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 FuelCell Energy (FCEL) 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.
FuelCell Energy is a member of the Oils-Energy sector. This group includes 252 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. FuelCell Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FCEL's full-year earnings has moved 17.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, FCEL has gained about 136.1% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 22.8% on a year-to-date basis. This means that FuelCell Energy is outperforming the sector as a whole this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Nabors Industries (NBR). The stock has returned 52.2% year-to-date.
For Nabors Industries, the consensus EPS estimate for the current year has increased 50.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, FuelCell Energy is a member of the Alternative Energy - Other industry, which includes 56 individual companies and currently sits at #87 in the Zacks Industry Rank. On average, stocks in this group have gained 7.6% this year, meaning that FCEL is performing better in terms of year-to-date returns.
Nabors Industries, however, belongs to the Oil and Gas - Drilling industry. Currently, this 9-stock industry is ranked #82. The industry has moved +33.2% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to FuelCell Energy and Nabors Industries as they could maintain their solid performance.
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FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report
Nabors Industries Ltd. (NBR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).