For investors seeking to capitalize on the Oils-Energy sector, finding the top performers is crucial. One company that’s making waves is Peabody Energy (BTU). Let’s take a closer look at its performance compared to the sector and industry.
Peabody Energy stands out among the 242 companies in the Oils-Energy group. The group itself currently holds the 16th position in the Zacks Sector Rank. This ranking system, based on the average Zacks Rank of individual companies, prioritizes sectors from best to worst. The Zacks Rank is a proven model, relying on earnings estimates and revisions to identify potential outperformers in the market over the next 1-3 months.
Peabody Energy boasts a Zacks Rank of #2 (Buy), indicating strong potential. Over the past 90 days, analyst sentiment has been positive, with the Zacks Consensus Estimate for BTU’s full-year earnings increasing by 20.7%. This positive outlook suggests strong earnings expectations.
Looking at year-to-date returns, Peabody Energy has delivered approximately 10%, outperforming the Oils-Energy group’s average gain of 7.5%. This outperformance signifies BTU’s strength in the sector.
Oneok Inc. (OKE), another Oils-Energy stock, has also generated impressive returns this year, reaching 38.9%. The consensus EPS estimate for Oneok Inc. has risen by 2.9% over the past three months, contributing to its Zacks Rank #2 (Buy).
Drilling deeper, Peabody Energy operates within the Coal industry, a group of 9 companies ranked 82nd in the Zacks Industry Rank. Although the industry has gained only 2.5% year-to-date, BTU’s performance is still stronger.
In contrast, Oneok Inc. is part of the Oil and Gas – Production Pipeline – MLB industry. This group, consisting of 6 companies, is ranked 194th and has experienced a year-to-date gain of 19.7%.
As investors navigate the Oils-Energy sector, keeping a close watch on Peabody Energy and Oneok Inc. is essential. Their strong performance and positive outlooks suggest they could maintain their upward trajectory in the future.