Back to top

Image: Bigstock

Are Oils-Energy Stocks Lagging Delek Logistics Partners (DKL) This Year?

Read MoreHide Full Article

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Delek Logistics Partners, L.P. (DKL - 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.

Delek Logistics Partners, L.P. is one of 240 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. 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. Delek Logistics Partners, L.P. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DKL's full-year earnings has moved 0.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, DKL has moved about 3.4% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 3% on average. This shows that Delek Logistics Partners, L.P. is outperforming its peers so far this year.

Imperial Oil (IMO - 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 45.4%.

In Imperial Oil's case, the consensus EPS estimate for the current year increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Delek Logistics Partners, L.P. belongs to the Oil and Gas - Production Pipeline - MLB industry, a group that includes 6 individual companies and currently sits at #66 in the Zacks Industry Rank. Stocks in this group have lost about 10.4% so far this year, so DKL is performing better this group in terms of year-to-date returns.

In contrast, Imperial Oil falls under the Oil and Gas - Integrated - Canadian industry. Currently, this industry has 4 stocks and is ranked #48. Since the beginning of the year, the industry has moved +11.8%.

Investors interested in the Oils-Energy sector may want to keep a close eye on Delek Logistics Partners, L.P. and Imperial Oil as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Imperial Oil Limited (IMO) - free report >>

Delek Logistics Partners, L.P. (DKL) - free report >>

Published in