Are Oils-Energy Stocks Lagging Archrock (AROC) This Year?

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Archrock Inc. (AROC) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Archrock Inc. is a member of our Oils-Energy group, which includes 234 different companies and currently sits at #9 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Archrock Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for AROC's full-year earnings has moved 9.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, AROC has moved about 42.3% on a year-to-date basis. At the same time, Oils-Energy stocks have gained an average of 31.9%. This means that Archrock Inc. is outperforming the sector as a whole this year.

Magnolia Oil & Gas Corp (MGY) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 42.9%.

The consensus estimate for Magnolia Oil & Gas Corp's current year EPS has increased 17.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Archrock Inc. belongs to the Oil and Gas - Field Services industry, which includes 19 individual stocks and currently sits at #35 in the Zacks Industry Rank. This group has gained an average of 40.5% so far this year, so AROC is performing better in this area.

On the other hand, Magnolia Oil & Gas Corp belongs to the Oil and Gas - Exploration and Production - United States industry. This 34-stock industry is currently ranked #91. The industry has moved +39.9% year to date.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Archrock Inc. and Magnolia Oil & Gas Corp as they could maintain their solid performance.

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

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