The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Matador Resources (MTDR) 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? 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.
Matador Resources is one of 248 companies in the Oils-Energy group. The Oils-Energy group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Matador Resources is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MTDR's full-year earnings has moved 3.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that MTDR has returned about 10.6% since the start of the calendar year. At the same time, Oils-Energy stocks have gained an average of 10.2%. This shows that Matador Resources is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Plains All American Pipeline (PAA). The stock is up 20.4% year-to-date.
The consensus estimate for Plains All American Pipeline's current year EPS has increased 0.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Matador Resources belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have gained 15.4% this year, meaning that MTDR is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Plains All American Pipeline falls under the Oil and Gas - Production Pipeline - MLB industry. Currently, this industry has 6 stocks and is ranked #59. Since the beginning of the year, the industry has moved +39.4%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Matador Resources and Plains All American Pipeline as they could maintain their solid performance.
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