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Are Oils-Energy Stocks Lagging Canadian Natural Resources Limited (CNQ) 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. Canadian Natural Resources (CNQ - 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.

Canadian Natural Resources is one of 245 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #10 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Canadian Natural Resources is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CNQ's full-year earnings has moved 6.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, CNQ has returned 8.8% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 8.7% on average. As we can see, Canadian Natural Resources is performing better than its sector in the calendar year.

Another Oils-Energy stock, which has outperformed the sector so far this year, is Ultrapar Participacoes S.A. (UGP - Free Report) . The stock has returned 58.6% year-to-date.

Over the past three months, Ultrapar Participacoes S.A.'s consensus EPS estimate for the current year has increased 52.8%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Canadian Natural Resources is a member of the Oil and Gas - Exploration and Production - Canadian industry, which includes 10 individual companies and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 7.3% so far this year, so CNQ is performing better in this area.

In contrast, Ultrapar Participacoes S.A. falls under the Oil and Gas - Production and Pipelines industry. Currently, this industry has 10 stocks and is ranked #154. Since the beginning of the year, the industry has moved +9.7%.

Canadian Natural Resources and Ultrapar Participacoes S.A. 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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