For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Epsilon Energy Ltd. (EPSN) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Epsilon Energy Ltd. is one of 246 companies in the Oils-Energy group. The Oils-Energy group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Epsilon Energy Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for EPSN's full-year earnings has moved 29.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that EPSN has returned about 14.2% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of -6%. This shows that Epsilon Energy Ltd. 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 20.2% year-to-date.
In Ultrapar Participacoes S.A.'s case, the consensus EPS estimate for the current year increased 8.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Epsilon Energy Ltd. belongs to the Oil and Gas - Integrated - United States industry, a group that includes 15 individual companies and currently sits at #82 in the Zacks Industry Rank. On average, this group has lost an average of 8.2% so far this year, meaning that EPSN 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 #72. The industry has moved +6.5% so far this year.
Investors interested in the Oils-Energy sector may want to keep a close eye on Epsilon Energy Ltd. and Ultrapar Participacoes S.A. as they attempt to continue their solid performance.
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Epsilon Energy Ltd. (EPSN): 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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