The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arch Resources (ARCH) been one of those stocks this year? 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.
Arch Resources is one of 255 individual stocks in the Oils-Energy sector. Collectively, these companies sit 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Arch Resources is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ARCH's full-year earnings has moved 143.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ARCH has returned 82% so far this year. In comparison, Oils-Energy companies have returned an average of 32.5%. This means that Arch Resources is performing better than its sector in terms of year-to-date returns.
Peabody Energy (BTU) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 341.1%.
For Peabody Energy, the consensus EPS estimate for the current year has increased 211.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Arch Resources belongs to the Coal industry, which includes 8 individual stocks and currently sits at #17 in the Zacks Industry Rank. On average, stocks in this group have gained 100.9% this year, meaning that ARCH is slightly underperforming its industry in terms of year-to-date returns. Peabody Energy is also part of the same industry.
Arch Resources and Peabody Energy 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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