Is Arch Resources (ARCH) outperforming other oil and energy stocks this year?

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.