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For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Epsilon Energy Ltd. (EPSN) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Epsilon Energy Ltd. is a member of the Oils-Energy sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #12. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Epsilon Energy Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for EPSN's full-year earnings has moved 29.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that EPSN has returned about 3.1% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of -14% on a year-to-date basis. This means that Epsilon Energy Ltd. is outperforming the sector as a whole this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Ultrapar Participacoes S.A. (UGP). The stock has returned 4.9% year-to-date.
Over the past three months, Ultrapar Participacoes S.A.'s consensus EPS estimate for the current year has increased 7%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Epsilon Energy Ltd. belongs to the Oil and Gas - Integrated - United States industry, which includes 15 individual stocks and currently sits at #78 in the Zacks Industry Rank. This group has lost an average of 14.9% so far this year, so EPSN is performing better in this area.
In contrast, Ultrapar Participacoes S.A. falls under the Oil and Gas - Production and Pipelines industry. Currently, this industry has 10 stocks and is ranked #92. Since the beginning of the year, the industry has moved -3.9%.
Epsilon Energy Ltd. and Ultrapar Participacoes S.A. could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.