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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. Arc Resources (AETUF) 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.
Arc Resources is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #7 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 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. Arc Resources is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for AETUF's full-year earnings has moved 31.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AETUF has returned about 4.1% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 2.6%. This means that Arc Resources is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, CrossAmerica Partners (CAPL), has outperformed the sector so far this year. The stock's year-to-date return is 7.3%.
The consensus estimate for CrossAmerica Partners' current year EPS has increased 72.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Arc Resources belongs to the Oil and Gas - Exploration and Production - Canadian industry, which includes 12 individual stocks and currently sits at #71 in the Zacks Industry Rank. This group has lost an average of 2.8% so far this year, so AETUF is performing better in this area.
On the other hand, CrossAmerica Partners belongs to the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. This 6-stock industry is currently ranked #162. The industry has moved +10.2% year to date.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Arc Resources and CrossAmerica Partners as they could maintain their solid performance.