For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Cheniere Energy (LNG) 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? By taking a look at the stock’s year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Cheniere Energy is one of 254 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #1 in 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. Cheniere Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for LNG’s full-year earnings has moved 41.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, LNG has returned 30.1% so far this year. In comparison, Oils-Energy companies have returned an average of 14.4%. This means that Cheniere Energy is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, Vaalco Energy (EGY), has outperformed the sector so far this year. The stock’s year-to-date return is 99.4%.
For Vaalco Energy, the consensus EPS estimate for the current year has increased 53.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Cheniere Energy is a member of the Oil and Gas – Exploration and Production – United States industry, which includes 40 individual companies and currently sits at #12 in the Zacks Industry Rank. Stocks in this group have gained about 21% so far this year, so LNG is performing better this group in terms of year-to-date returns.
In contrast, Vaalco Energy falls under the Oil and Gas – Exploration and Production – International industry. Currently, this industry has 10 stocks and is ranked #11. Since the beginning of the year, the industry has moved +60.3%.
Investors with an interest in Oils-Energy stocks should continue to track Cheniere Energy and Vaalco Energy. These stocks will be looking to continue their solid performance.
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