Is Diamondback Energy (FANG) Outperforming Other Oils-Energy Stocks This Year?
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Diamondback Energy (FANG) one of those stocks right now? 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.
Diamondback Energy is one of 246 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Diamondback Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FANG's full-year earnings has moved 3.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, FANG has returned 22.4% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 6.3% on a year-to-date basis. This shows that Diamondback Energy is outperforming its peers so far this year.
Berry Petroleum (BRY) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.1%.
The consensus estimate for Berry Petroleum's current year EPS has increased 434.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Diamondback Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 40 individual stocks and currently sits at #16 in the Zacks Industry Rank. On average, stocks in this group have gained 7.7% this year, meaning that FANG is performing better in terms of year-to-date returns.
Berry Petroleum, however, belongs to the Oil and Gas - Integrated - United States industry. Currently, this 12-stock industry is ranked #45. The industry has moved +8.7% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Diamondback Energy and Berry Petroleum as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Berry Corporation (BRY) : Free Stock Analysis Report
