The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Phillips 66 (PSX) 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.
Phillips 66 is a member of our Oils-Energy group, which includes 240 different companies and currently sits at #13 in 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 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. Phillips 66 is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for PSX's full-year earnings has moved 24.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that PSX has returned about 22.4% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 8.1% on a year-to-date basis. This shows that Phillips 66 is outperforming its peers so far this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Ultrapar Participacoes S.A. (UGP). The stock has returned 49.8% year-to-date.
Over the past three months, Ultrapar Participacoes S.A.'s consensus EPS estimate for the current year has increased 31.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Phillips 66 belongs to the Oil and Gas - Refining and Marketing industry, which includes 13 individual stocks and currently sits at #42 in the Zacks Industry Rank. On average, stocks in this group have gained 22.4% this year, meaning that PSX is performing better in terms of year-to-date returns.
Ultrapar Participacoes S.A., however, belongs to the Oil and Gas - Production and Pipelines industry. Currently, this 10-stock industry is ranked #53. The industry has moved +11.8% so far this year.
Investors with an interest in Oils-Energy stocks should continue to track Phillips 66 and Ultrapar Participacoes S.A.. These stocks will be looking to continue their solid performance.
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Phillips 66 (PSX): Free Stock Analysis Report Ultrapar Participacoes S.A. (UGP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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