The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Imperial Oil (IMO) one of those stocks right now? 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.
Imperial Oil is a member of our Oils-Energy group, which includes 252 different companies and currently sits at #5 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 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. Imperial Oil is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for IMO's full-year earnings has moved 59.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, IMO has moved about 29.8% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 18.6% on average. This shows that Imperial Oil is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Cenovus Energy (CVE). The stock is up 46.6% year-to-date.
In Cenovus Energy's case, the consensus EPS estimate for the current year increased 75.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Imperial Oil belongs to the Oil and Gas - Integrated - Canadian industry, a group that includes 4 individual stocks and currently sits at #26 in the Zacks Industry Rank. On average, this group has gained an average of 30.6% so far this year, meaning that IMO is slightly underperforming its industry in terms of year-to-date returns. Cenovus Energy is also part of the same industry.
Investors interested in the Oils-Energy sector may want to keep a close eye on Imperial Oil and Cenovus Energy as they attempt to continue their solid performance.
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Imperial Oil Limited (IMO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).