The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Transocean (RIG) 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.
Transocean is one of 248 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #12 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. Transocean is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for RIG’s full-year earnings has moved 28.3% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, RIG has returned 64.9% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 1% on a year-to-date basis. This means that Transocean is outperforming the sector as a whole this year.
Valero Energy (VLO) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.7%.
For Valero Energy, the consensus EPS estimate for the current year has increased 11.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Transocean is a member of the Oil and Gas – Drilling industry, which includes 8 individual companies and currently sits at #19 in the Zacks Industry Rank. This group has gained an average of 15.9% so far this year, so RIG is performing better in this area.
In contrast, Valero Energy falls under the Oil and Gas – Refining and Marketing industry. Currently, this industry has 16 stocks and is ranked #35. Since the beginning of the year, the industry has moved -2.3%.
Investors with an interest in Oils-Energy stocks should continue to track Transocean and Valero Energy. These stocks will be looking to continue their solid performance.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
