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The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Constellation Energy Corporation (CEG) 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.
Constellation Energy Corporation is a member of the Oils-Energy sector. This group includes 239 individual stocks and currently holds a Zacks Sector Rank of #10. 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 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. Constellation Energy Corporation is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CEG's full-year earnings has moved 4.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CEG has returned 95.3% so far this year. In comparison, Oils-Energy companies have returned an average of 0.4%. As we can see, Constellation Energy Corporation is performing better than its sector in the calendar year.
One other Oils-Energy stock that has outperformed the sector so far this year is NextDecade (NEXT). The stock is up 43% year-to-date.
For NextDecade, the consensus EPS estimate for the current year has increased 52% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Constellation Energy Corporation belongs to the Alternative Energy - Other industry, a group that includes 43 individual stocks and currently sits at #76 in the Zacks Industry Rank. This group has gained an average of 57.4% so far this year, so CEG is performing better in this area.
NextDecade, however, belongs to the Oil and Gas - Production Pipeline - MLB industry. Currently, this 6-stock industry is ranked #76. The industry has moved +28.2% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Constellation Energy Corporation and NextDecade as they could maintain their solid performance.