For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Evolution Petroleum (EPM) been one of those stocks this year? 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.
Evolution Petroleum is a member of our Oils-Energy group, which includes 256 different companies and currently sits at #2 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. Evolution Petroleum is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for EPM’s full-year earnings has moved 27.8% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that EPM has returned about 30.5% since the start of the calendar year. Meanwhile, stocks in the Oils-Energy group have gained about 18.5% on average. This means that Evolution Petroleum is outperforming the sector as a whole this year.
Equinor (EQNR) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 21.3%.
In Equinor’s case, the consensus EPS estimate for the current year increased 12.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Evolution Petroleum belongs to the Oil and Gas – Exploration and Production – United States industry, which includes 42 individual stocks and currently sits at #51 in the Zacks Industry Rank. On average, stocks in this group have gained 24.3% this year, meaning that EPM is performing better in terms of year-to-date returns.
On the other hand, Equinor belongs to the Alternative Energy – Other industry. This 33-stock industry is currently ranked #165. The industry has moved +9.2% year to date.
Investors with an interest in Oils-Energy stocks should continue to track Evolution Petroleum and Equinor. These stocks will be looking to continue their solid performance.
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