For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Clearway Energy (CWEN) 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? Let’s take a closer look at the stock’s year-to-date performance to find out.
Clearway Energy is a member of the Oils-Energy sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #14. 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 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. Clearway Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CWEN’s full-year earnings has moved 23.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CWEN has returned 6.1% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 1.6% on average. This shows that Clearway Energy is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Energy Transfer LP (ET). The stock is up 10.1% year-to-date.
Over the past three months, Energy Transfer LP’s consensus EPS estimate for the current year has increased 12.5%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Clearway Energy is a member of the Alternative Energy – Other industry, which includes 38 individual companies and currently sits at #179 in the Zacks Industry Rank. On average, this group has gained an average of 0.8% so far this year, meaning that CWEN is performing better in terms of year-to-date returns.
In contrast, Energy Transfer LP falls under the Oil and Gas – Production Pipeline – MLB industry. Currently, this industry has 9 stocks and is ranked #161. Since the beginning of the year, the industry has moved +8.1%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Clearway Energy and Energy Transfer LP as they could maintain their solid performance.