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Is Arch Resources (ARCH) Stock Outpacing Its Oils-Energy Peers This Year?

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Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Has Arch Resources (ARCH - Free Report) been one of those stocks this year? 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.

Arch Resources is one of 254 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #3 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 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. Arch Resources is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ARCH's full-year earnings has moved 60.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ARCH has gained about 57.7% so far this year. In comparison, Oils-Energy companies have returned an average of 29.8%. As we can see, Arch Resources is performing better than its sector in the calendar year.

Chesapeake Energy (CHK - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 38.4%.

The consensus estimate for Chesapeake Energy's current year EPS has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arch Resources belongs to the Coal industry, which includes 9 individual stocks and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 62.3% this year, meaning that ARCH is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Chesapeake Energy falls under the Alternative Energy - Other industry. Currently, this industry has 33 stocks and is ranked #176. Since the beginning of the year, the industry has moved +16.7%.

Arch Resources and Chesapeake Energy 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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