The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Patterson-UTI (PTEN) 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.
Patterson-UTI is a member of our Oils-Energy group, which includes 254 different companies and currently sits at #1 in the Zacks Sector Rank. 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 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. Patterson-UTI is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PTEN's full-year earnings has moved 59.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, PTEN has moved about 78.9% on a year-to-date basis. At the same time, Oils-Energy stocks have gained an average of 21.1%. This shows that Patterson-UTI is outperforming its peers so far this year.
Solaris Oilfield Infrastructure, Inc. (SOI) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 72.8%.
In Solaris Oilfield Infrastructure, Inc.'s case, the consensus EPS estimate for the current year increased 118.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Patterson-UTI is a member of the Oil and Gas - Drilling industry, which includes 7 individual companies and currently sits at #66 in the Zacks Industry Rank. On average, this group has gained an average of 54.9% so far this year, meaning that PTEN is performing better in terms of year-to-date returns.
In contrast, Solaris Oilfield Infrastructure, Inc. falls under the Oil and Gas - Field Services industry. Currently, this industry has 28 stocks and is ranked #102. Since the beginning of the year, the industry has moved +9%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Patterson-UTI and Solaris Oilfield Infrastructure, Inc. as they could maintain their solid performance.
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