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Is Suncor Energy (SU) 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. Suncor Energy (SU - 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.

Suncor Energy is a member of the Oils-Energy sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #13. 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. Suncor Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SU's full-year earnings has moved 9.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, SU has gained about 7.4% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 3.7% on a year-to-date basis. This means that Suncor Energy is performing better than its sector in terms of year-to-date returns.

Valero Energy (VLO - 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 30.7%.

Over the past three months, Valero Energy's consensus EPS estimate for the current year has increased 34.9%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Suncor Energy belongs to the Oil and Gas - Integrated - Canadian industry, a group that includes 4 individual companies and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 9% so far this year, so SU is slightly underperforming its industry in this area.

On the other hand, Valero Energy belongs to the Oil and Gas - Refining and Marketing industry. This 15-stock industry is currently ranked #27. The industry has moved +15% year to date.

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


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