IInvestors interested in Oil & Energy stocks should always look for the best performing companies in the group. Was Arch Resources (ARCH) one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.
Arch Resources is a member of the Oil & Energy sector. This group comprises 256 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Ranking considers 16 different groups, measuring the average Zacks Rank of individual stocks within the sector to gauge the strength of each group. .
The Zacks Rankings is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that display the right characteristics to beat the market over the next one to three months. Arch Resources currently sports a Zacks rank of #2 (buy).
Over the past quarter, the Zacks consensus estimate for ARCH’s annual earnings rose 15.1%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that ARCH has returned around 15% since the start of the calendar year. By comparison, oil and energy companies earned an average return of 14.1%. This means Arch Resources is outperforming the overall sector this year.
Another Oil & Energy stock, Enerplus (ERF), has outperformed the sector so far this year. The return on the share since the beginning of the year is 14.4%.
Enerplus’ current-year EPS consensus estimate rose 12.2% over the past three months. The stock currently has a Zacks rank #2 (buy).
Breaking down further, Arch Resources is a member of the Coal Industry, which comprises 9 individual companies and is currently ranked 13th in the Zacks Industry Rankings. On average, stocks in this group have gained 13.8% this year, meaning that ARCH is showing better results in terms of returns since the start of the year.
In contrast, Enerplus belongs to the Oil and Gas Industry – Exploration and Production – Canada. This 6-stock industry is currently ranked #31. The industry has grown by +25.1% since the start of the year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Arch Resources and Enerplus as they may maintain their strong performance.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 buy and hold tickers for all of 2022?
Last year 2021 Zacks Top 10 Stocks the portfolio generated gains as high as +147.7%. Now, a brand new portfolio has been selected from over 4,000 companies covered by the Zacks ranking. Don’t miss your chance to participate in this long term shopping
Access the Top 10 Zacks Stocks for 2022 today >>
Click to get this free report
Arch Resources Inc. (ARCH): Free Stock Analysis Report
Enerplus Corporation (ERF): Free Inventory Analysis Report
To read this article on Zacks.com, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.