For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Enphase Energy (ENPH) 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.
Enphase Energy 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 gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Enphase Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ENPH’s full-year earnings has moved 9.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ENPH has moved about 63.4% on a year-to-date basis. In comparison, Oils-Energy companies have returned an average of 29.6%. This means that Enphase Energy is outperforming the sector as a whole this year.
NexTier Oilfield Solutions (NEX) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 155.8%.
In NexTier Oilfield Solutions’ case, the consensus EPS estimate for the current year increased 11% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Enphase Energy is a member of the Solar industry, which includes 16 individual companies and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 21.2% so far this year, so ENPH is performing better this group in terms of year-to-date returns.
NexTier Oilfield Solutions, however, belongs to the Oil and Gas – Field Services industry. Currently, this 25-stock industry is ranked #19. The industry has moved -35.6% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Enphase Energy and NexTier Oilfield Solutions as they could maintain their solid performance.
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