Is Transocean (RIG) Stock Outpacing Its Oils-Energy Peers This Year?
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Is Transocean (RIG) 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.
Transocean is one of 250 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Transocean is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for RIG’s full-year earnings has moved 7.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, RIG has returned 43.8% so far this year. At the same time, Oils-Energy stocks have gained an average of 35.2%. This means that Transocean is outperforming the sector as a whole this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Seadrill (SDRL). The stock has returned 43.8% year-to-date.
The consensus estimate for Seadrill’s current year EPS has increased 1062.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Transocean is a member of the Oil and Gas – Drilling industry, which includes 9 individual companies and currently sits at #191 in the Zacks Industry Rank. Stocks in this group have gained about 57.6% so far this year, so RIG is slightly underperforming its industry this group in terms of year-to-date returns. Seadrill is also part of the same industry.
Investors interested in the Oils-Energy sector may want to keep a close eye on Transocean and Seadrill as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).