For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Denbury Resources (DNR - Free Report) one of those stocks right now? 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.
Denbury Resources is one of 329 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #2 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 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. DNR is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DNR's full-year earnings has moved 16.53% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, DNR has returned 56.11% so far this year. Meanwhile, the Oils-Energy sector has returned an average of -1.31% on a year-to-date basis. This means that Denbury Resources is performing better than its sector in terms of year-to-date returns.
To break things down more, DNR belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 78 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, this group has lost an average of 13.04% so far this year, meaning that DNR is performing better in terms of year-to-date returns.
DNR will likely be looking to continue its solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to the company.