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Is Texas Pacific Land (TPL) Stock Outpacing Its Oils-Energy Peers This Year?

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For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Texas Pacific (TPL - Free Report) 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? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.

Texas Pacific is one of 248 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #14 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Texas Pacific is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for TPL's full-year earnings has moved 13.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that TPL has returned about 13.7% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 6.2% on a year-to-date basis. This means that Texas Pacific is performing better than its sector in terms of year-to-date returns.

Another stock in the Oils-Energy sector, Vitesse Energy (VTS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 12.2%.

For Vitesse Energy, the consensus EPS estimate for the current year has increased 15% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Texas Pacific is a member of the Alternative Energy - Other industry, which includes 42 individual companies and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have gained about 30.5% so far this year, so TPL is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, Vitesse Energy falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 36 stocks and is ranked #159. Since the beginning of the year, the industry has moved +4.9%.

Texas Pacific and Vitesse Energy could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.


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