Are Oils-Energy Stocks Lagging Galp Energia (GLPEY) 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. Galp Energia SGPS SA (GLPEY) 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.

Galp Energia SGPS SA is one of 234 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #12 in 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 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. Galp Energia SGPS SA is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for GLPEY's full-year earnings has moved 2.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, GLPEY has gained about 50.8% so far this year. In comparison, Oils-Energy companies have returned an average of 30.3%. As we can see, Galp Energia SGPS SA is performing better than its sector in the calendar year.

Another Oils-Energy stock, which has outperformed the sector so far this year, is Nabors Industries (NBR). The stock has returned 47.3% year-to-date.

Over the past three months, Nabors Industries' consensus EPS estimate for the current year has increased 22.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Galp Energia SGPS SA belongs to the Oil and Gas - Refining and Marketing industry, which includes 16 individual stocks and currently sits at #152 in the Zacks Industry Rank. On average, this group has gained an average of 45.7% so far this year, meaning that GLPEY is performing better in terms of year-to-date returns.

In contrast, Nabors Industries falls under the Oil and Gas - Drilling industry. Currently, this industry has 9 stocks and is ranked #167. Since the beginning of the year, the industry has moved +56.4%.

Galp Energia SGPS SA and Nabors Industries could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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