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Is Diamondback Energy (FANG) Stock Outpacing Its Oils-Energy Peers This Year?

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The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Diamondback Energy (FANG - 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.

Diamondback Energy is one of 249 companies in the Oils-Energy group. The Oils-Energy group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Diamondback Energy is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for FANG's full-year earnings has moved 2.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that FANG has returned about 31.7% since the start of the calendar year. Meanwhile, stocks in the Oils-Energy group have gained about 7.3% on average. This means that Diamondback Energy 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 Archrock Inc. (AROC - Free Report) . The stock is up 30.1% year-to-date.

Over the past three months, Archrock Inc.'s consensus EPS estimate for the current year has increased 17.6%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Diamondback Energy belongs to the Oil and Gas - Exploration and Production - United States industry, which includes 36 individual stocks and currently sits at #144 in the Zacks Industry Rank. This group has lost an average of 3% so far this year, so FANG is performing better in this area.

On the other hand, Archrock Inc. belongs to the Oil and Gas - Field Services industry. This 24-stock industry is currently ranked #150. The industry has moved -0.1% year to date.

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


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