Are Oils-Energy Stocks Lagging Enbridge (ENB) 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. Enbridge (ENB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.
Enbridge is a member of the Oils-Energy sector. This group includes 249 individual stocks and currently holds a Zacks Sector Rank of #16. 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. Enbridge is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ENB's full-year earnings has moved 3.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ENB has gained about 3.3% so far this year. In comparison, Oils-Energy companies have returned an average of 1.6%. This means that Enbridge is performing better than its sector in terms of year-to-date returns.
One other Oils-Energy stock that has outperformed the sector so far this year is Ramaco Resources (METC). The stock is up 21.3% year-to-date.
For Ramaco Resources, the consensus EPS estimate for the current year has increased 17.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Enbridge is a member of the Oil and Gas - Production and Pipelines industry, which includes 11 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, this group has gained an average of 12.3% so far this year, meaning that ENB is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Ramaco Resources falls under the Coal industry. Currently, this industry has 10 stocks and is ranked #17. Since the beginning of the year, the industry has moved +17.4%.
Enbridge and Ramaco Resources could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.
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