Is NOW (DNOW) Stock Outpacing Its Oils-Energy Peers This Year?
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Has Now (DNOW) 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.
Now is one of 253 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. Now is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DNOW's full-year earnings has moved 42% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, DNOW has moved about 51.9% on a year-to-date basis. Meanwhile, the Oils-Energy sector has returned an average of 35% on a year-to-date basis. This shows that Now is outperforming its peers so far this year.
Another stock in the Oils-Energy sector, Alliance Resource Partners, L.P. (ARLP), has outperformed the sector so far this year. The stock's year-to-date return is 101.7%.
In Alliance Resource Partners, L.P.'s case, the consensus EPS estimate for the current year increased 43.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Now belongs to the Oil and Gas - Mechanical and and Equipment industry, a group that includes 12 individual companies and currently sits at #34 in the Zacks Industry Rank. On average, stocks in this group have gained 15% this year, meaning that DNOW is performing better in terms of year-to-date returns.
Alliance Resource Partners, L.P. however, belongs to the Coal industry. Currently, this 8-stock industry is ranked #93. The industry has moved +102.2% so far this year.
Investors interested in the Oils-Energy sector may want to keep a close eye on Now and Alliance Resource Partners, L.P. as they attempt to continue 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
NOW Inc. (DNOW) : Free Stock Analysis Report
Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
