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Is Arch Resources (ARCH) Stock Outpacing Its Oils-Energy Peers This Year?

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 Arch Resources (ARCH) 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.

Arch Resources is one of 248 companies in the Oils-Energy group. The Oils-Energy group currently sits at #15 within the Zacks Sector Rank. 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 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. Arch Resources is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ARCH's full-year earnings has moved 11.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ARCH has gained about 3.7% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 3% on average. As we can see, Arch Resources is performing better than its sector in the calendar year.

Another Oils-Energy stock, which has outperformed the sector so far this year, is Peabody Energy (BTU). The stock has returned 5.6% year-to-date.

Over the past three months, Peabody Energy's consensus EPS estimate for the current year has increased 7.4%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arch Resources is a member of the Coal industry, which includes 11 individual companies and currently sits at #50 in the Zacks Industry Rank. This group has lost an average of 3.5% so far this year, so ARCH is performing better in this area. Peabody Energy is also part of the same industry.

Arch Resources and Peabody Energy 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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Zacks Investment Research