Is NOW (DNOW) Stock Outpacing Its Oils-Energy Peers 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 Now (DNOW) one of those stocks right now? 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.
Now is a member of the Oils-Energy sector. This group includes 254 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Now is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DNOW's full-year earnings has moved 25.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DNOW has returned about 32.8% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 30.1%. This shows that Now is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Chesapeake Energy (CHK). The stock is up 58.5% year-to-date.
In Chesapeake Energy's case, the consensus EPS estimate for the current year increased 30.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Now belongs to the Oil and Gas - Mechanical and and Equipment industry, a group that includes 9 individual stocks and currently sits at #28 in the Zacks Industry Rank. Stocks in this group have gained about 4.3% so far this year, so DNOW is performing better this group in terms of year-to-date returns.
Chesapeake Energy, however, belongs to the Oil and Gas - Exploration and Production - United States industry. Currently, this 41-stock industry is ranked #22. The industry has moved +48.3% so far this year.
Investors with an interest in Oils-Energy stocks should continue to track Now and Chesapeake Energy. These stocks will be looking to continue their solid performance.
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