Has Magnolia Oil & Gas Corp (MGY) Outpaced Other Oils-Energy Stocks This Year?
The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Magnolia Oil & Gas Corp (MGY) 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.
Magnolia Oil & Gas Corp is a member of the Oils-Energy sector. This group includes 257 individual stocks and currently holds a Zacks Sector Rank of #1. 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. Magnolia Oil & Gas Corp is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MGY's full-year earnings has moved 47.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that MGY has returned about 27.3% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 25.6%. This shows that Magnolia Oil & Gas Corp is outperforming its peers so far this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Arch Resources (ARCH). The stock has returned 85.1% year-to-date.
In Arch Resources' case, the consensus EPS estimate for the current year increased 68.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Magnolia Oil & Gas Corp belongs to the Oil and Gas - Exploration and Production - United States industry, which includes 41 individual stocks and currently sits at #6 in the Zacks Industry Rank. Stocks in this group have gained about 37% so far this year, so MGY is slightly underperforming its industry this group in terms of year-to-date returns.
Arch Resources, however, belongs to the Coal industry. Currently, this 9-stock industry is ranked #4. The industry has moved +71.1% so far this year.
Investors with an interest in Oils-Energy stocks should continue to track Magnolia Oil & Gas Corp and Arch Resources. These stocks will be looking to continue their solid performance.
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