Is New Fortress Energy (NFE) Stock Outpacing Its Oils-Energy Peers This Year?
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. New Fortress Energy (NFE) 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.
New Fortress Energy is a member of our Oils-Energy group, which includes 250 different companies and currently sits at #1 in 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 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. New Fortress Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for NFE's full-year earnings has moved 36.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that NFE has returned about 143.1% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 43.3%. This shows that New Fortress Energy is outperforming its peers so far this year.
Another stock in the Oils-Energy sector, ProPetro Holding (PUMP), has outperformed the sector so far this year. The stock's year-to-date return is 49.4%.
In ProPetro Holding's case, the consensus EPS estimate for the current year increased 67% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, New Fortress Energy belongs to the Oil and Gas - Integrated - International industry, which includes 14 individual stocks and currently sits at #36 in the Zacks Industry Rank. On average, stocks in this group have gained 56.1% this year, meaning that NFE is performing better in terms of year-to-date returns.
In contrast, ProPetro Holding falls under the Oil and Gas - Field Services industry. Currently, this industry has 25 stocks and is ranked #22. Since the beginning of the year, the industry has moved +17.6%.
Investors with an interest in Oils-Energy stocks should continue to track New Fortress Energy and ProPetro Holding. These stocks will be looking to continue their solid performance.
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