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 Paramount Resources (PRMRF) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Paramount Resources is one of 238 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #3 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Paramount Resources is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for PRMRF's full-year earnings has moved 688.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that PRMRF has returned about 28.8% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 28%. This means that Paramount Resources is outperforming the sector as a whole this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Phillips 66 (PSX). The stock has returned 43.1% year-to-date.
For Phillips 66, the consensus EPS estimate for the current year has increased 54.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Paramount Resources belongs to the Oil and Gas - Exploration and Production - Canadian industry, a group that includes 8 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, this group has gained an average of 44.7% so far this year, meaning that PRMRF is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Phillips 66 falls under the Oil and Gas - Refining and Marketing industry. Currently, this industry has 17 stocks and is ranked #5. Since the beginning of the year, the industry has moved +48.2%.
Paramount Resources and Phillips 66 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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This article originally published on Zacks Investment Research (zacks.com).