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Is Matador Resources (MTDR) 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. Matador Resources (MTDR - 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? 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.

Matador Resources is a member of our Oils-Energy group, which includes 254 different companies and currently sits at #1 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. Matador Resources is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for MTDR's full-year earnings has moved 35.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, MTDR has returned 32.5% so far this year. At the same time, Oils-Energy stocks have gained an average of 20.4%. This means that Matador Resources is performing better than its sector in terms of year-to-date returns.

One other Oils-Energy stock that has outperformed the sector so far this year is PDC Energy . The stock is up 29.1% year-to-date.

The consensus estimate for PDC Energy's current year EPS has increased 28.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Matador Resources belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 41 individual companies and currently sits at #38 in the Zacks Industry Rank. Stocks in this group have gained about 31.1% so far this year, so MTDR is performing better this group in terms of year-to-date returns. PDC Energy is also part of the same industry.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Matador Resources and PDC Energy as they could maintain their solid performance.


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