For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Peabody Energy (BTU) 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? 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.
Peabody Energy is a member of the Oils-Energy sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. Peabody Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BTU's full-year earnings has moved 34.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BTU has returned about 6.1% since the start of the calendar year. Meanwhile, stocks in the Oils-Energy group have gained about 1.7% on average. This means that Peabody Energy is outperforming the sector as a whole this year.
Another stock in the Oils-Energy sector, Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST), has outperformed the sector so far this year. The stock's year-to-date return is 23.2%.
The consensus estimate for Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR's current year EPS has increased 7.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Peabody Energy belongs to the Coal industry, a group that includes 11 individual companies and currently sits at #91 in the Zacks Industry Rank. On average, stocks in this group have gained 2.6% this year, meaning that BTU is performing better in terms of year-to-date returns.
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR, however, belongs to the Oil and Gas - Integrated - International industry. Currently, this 14-stock industry is ranked #60. The industry has moved +2.6% so far this year.
Investors interested in the Oils-Energy sector may want to keep a close eye on Peabody Energy and Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR as they attempt to continue their solid performance.
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