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 Eni SpA (E) been one of those stocks this year? 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.
Eni SpA is one of 250 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #4 in 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 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. Eni SpA is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for E's full-year earnings has moved 1.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, E has returned 48.7% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 34.5% on average. This means that Eni SpA is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, Repsol SA (REPYY), has outperformed the sector so far this year. The stock's year-to-date return is 80.4%.
In Repsol SA's case, the consensus EPS estimate for the current year increased 32.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Eni SpA belongs to the Oil and Gas - Integrated - International industry, a group that includes 17 individual companies and currently sits at #68 in the Zacks Industry Rank. Stocks in this group have gained about 39.6% so far this year, so E is performing better this group in terms of year-to-date returns. Repsol SA is also part of the same industry.
Investors with an interest in Oils-Energy stocks should continue to track Eni SpA and Repsol SA. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).