For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Nabors Industries (NBR) 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? 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.
Nabors Industries is one of 234 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #15 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 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. Nabors Industries is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NBR's full-year earnings has moved 22.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NBR has returned 41.6% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 23.8% on average. This shows that Nabors Industries is outperforming its peers so far this year.
Another stock in the Oils-Energy sector, Oceaneering International (OII), has outperformed the sector so far this year. The stock's year-to-date return is 49.3%.
In Oceaneering International's case, the consensus EPS estimate for the current year increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Nabors Industries belongs to the Oil and Gas - Drilling industry, a group that includes 9 individual stocks and currently sits at #157 in the Zacks Industry Rank. Stocks in this group have gained about 50.4% so far this year, so NBR is slightly underperforming its industry this group in terms of year-to-date returns.
In contrast, Oceaneering International falls under the Oil and Gas - Field Services industry. Currently, this industry has 19 stocks and is ranked #86. Since the beginning of the year, the industry has moved +38.8%.
Investors interested in the Oils-Energy sector may want to keep a close eye on Nabors Industries and Oceaneering International as they attempt to continue their solid performance.
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Nabors Industries Ltd. (NBR): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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