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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. Arch Resources (ARCH - 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.

Arch Resources is a member of our Oils-Energy group, which includes 257 different companies and currently sits at #1 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 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. 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 61.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that ARCH has returned about 67.8% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 28.7%. As we can see, Arch Resources is performing better than its sector in the calendar year.

One other Oils-Energy stock that has outperformed the sector so far this year is Ovintiv (OVV - Free Report) . The stock is up 52.6% year-to-date.

In Ovintiv's case, the consensus EPS estimate for the current year increased 14.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arch Resources is a member of the Coal industry, which includes 9 individual companies and currently sits at #6 in the Zacks Industry Rank. Stocks in this group have gained about 73.4% so far this year, so ARCH is slightly underperforming its industry this group in terms of year-to-date returns.

Ovintiv, however, belongs to the Oil and Gas - Exploration and Production - Canadian industry. Currently, this 6-stock industry is ranked #52. The industry has moved +51.2% so far this year.

Arch Resources and Ovintiv 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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