Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. BP (BP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.
BP is one of 254 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 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. BP is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BP's full-year earnings has moved 41.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, BP has moved about 45.1% on a year-to-date basis. In comparison, Oils-Energy companies have returned an average of 43.1%. As we can see, BP is performing better than its sector in the calendar year.
One other Oils-Energy stock that has outperformed the sector so far this year is Eni SpA (E). The stock is up 60.3% year-to-date.
In Eni SpA's case, the consensus EPS estimate for the current year increased 17.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, BP belongs to the Oil and Gas - Integrated - International industry, a group that includes 19 individual stocks and currently sits at #8 in the Zacks Industry Rank. Stocks in this group have gained about 53.4% so far this year, so BP is slightly underperforming its industry this group in terms of year-to-date returns. Eni SpA is also part of the same industry.
Investors with an interest in Oils-Energy stocks should continue to track BP and Eni SpA. These stocks will be looking to continue their solid performance.
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BP p.l.c. (BP): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).