The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Murphy USA (MUSA) 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.
Murphy USA is one of 252 companies in the Oils-Energy group. The Oils-Energy group currently sits at #14 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 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. Murphy USA is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MUSA’s full-year earnings has moved 5.4% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, MUSA has gained about 3.5% so far this year. At the same time, Oils-Energy stocks have lost an average of 5.3%. This means that Murphy USA is outperforming the sector as a whole this year.
Weatherford (WFRD) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 23.1%.
In Weatherford’s case, the consensus EPS estimate for the current year increased 22% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Murphy USA belongs to the Oil and Gas – Refining and Marketing industry, which includes 16 individual stocks and currently sits at #97 in the Zacks Industry Rank. Stocks in this group have lost about 10.8% so far this year, so MUSA is performing better this group in terms of year-to-date returns.
In contrast, Weatherford falls under the Oil and Gas – Field Services industry. Currently, this industry has 23 stocks and is ranked #216. Since the beginning of the year, the industry has moved -9%.
Investors interested in the Oils-Energy sector may want to keep a close eye on Murphy USA and Weatherford as they attempt to continue their solid performance.
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