For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Halliburton (HAL) one of those stocks right now? 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.
Halliburton is a member of our Oils-Energy group, which includes 253 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 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. Halliburton is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for HAL’s full-year earnings has moved 4.4% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, HAL has gained about 36% so far this year. At the same time, Oils-Energy stocks have gained an average of 32.1%. As we can see, Halliburton is performing better than its sector in the calendar year.
Another stock in the Oils-Energy sector, DCP Midstream Partners, LP (DCP), has outperformed the sector so far this year. The stock’s year-to-date return is 39.1%.
The consensus estimate for DCP Midstream Partners, LP’s current year EPS has increased 6.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Halliburton belongs to the Oil and Gas – Field Services industry, a group that includes 26 individual companies and currently sits at #28 in the Zacks Industry Rank. Stocks in this group have lost about 0.1% so far this year, so HAL is performing better this group in terms of year-to-date returns.
On the other hand, DCP Midstream Partners, LP belongs to the Oil and Gas – Production and Pipelines industry. This 13-stock industry is currently ranked #53. The industry has moved +8.4% year to date.
Halliburton and DCP Midstream Partners, LP could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.