Is Texas Pacific Land (TPL) 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. Texas Pacific (TPL) 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? 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.
Texas Pacific is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #4 within the Zacks Sector Rank. 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 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. Texas Pacific is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for TPL's full-year earnings has moved 7.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that TPL has returned about 108.2% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 32.2% on a year-to-date basis. This means that Texas Pacific 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 YPF Sociedad Anonima (YPF). The stock is up 127.2% year-to-date.
In YPF Sociedad Anonima's case, the consensus EPS estimate for the current year increased 25.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Texas Pacific belongs to the Alternative Energy - Other industry, a group that includes 40 individual companies and currently sits at #164 in the Zacks Industry Rank. Stocks in this group have gained about 6.6% so far this year, so TPL is performing better this group in terms of year-to-date returns.
In contrast, YPF Sociedad Anonima falls under the Oil and Gas - Integrated - International industry. Currently, this industry has 14 stocks and is ranked #63. Since the beginning of the year, the industry has moved +52.2%.
Investors with an interest in Oils-Energy stocks should continue to track Texas Pacific and YPF Sociedad Anonima. These stocks will be looking to continue their solid performance.
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Texas Pacific Land Corporation (TPL) : Free Stock Analysis Report
YPF Sociedad Anonima (YPF) : Free Stock Analysis Report
