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Is Schlumberger (SLB) Outperforming Other Oils-Energy Stocks This Year?

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For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Schlumberger (SLB - Free Report) 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.

Schlumberger is a member of the Oils-Energy sector. This group includes 253 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Schlumberger is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SLB's full-year earnings has moved 0.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, SLB has returned 36.7% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 34.8% on average. This means that Schlumberger is performing better than its sector in terms of year-to-date returns.

Another Oils-Energy stock, which has outperformed the sector so far this year, is SM Energy (SM - Free Report) . The stock has returned 409.6% year-to-date.

For SM Energy, the consensus EPS estimate for the current year has increased 633% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Schlumberger belongs to the Oil and Gas - Field Services industry, a group that includes 29 individual companies and currently sits at #155 in the Zacks Industry Rank. This group has gained an average of 26.4% so far this year, so SLB is performing better in this area.

In contrast, SM Energy falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 43 stocks and is ranked #111. Since the beginning of the year, the industry has moved +112.7%.

Schlumberger and SM 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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