Back to top

Image: Bigstock

Is Hess Midstream Partners (HESM) Stock Outpacing Its Oils-Energy Peers This Year?

Read MoreHide Full Article

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Hess Midstream Partners LP (HESM - 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? 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.

Hess Midstream Partners LP is one of 249 companies in the Oils-Energy group. The Oils-Energy group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Hess Midstream Partners LP is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for HESM's full-year earnings has moved 3.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that HESM has returned about 17.4% since the start of the calendar year. At the same time, Oils-Energy stocks have gained an average of 5.2%. As we can see, Hess Midstream Partners LP is performing better than its sector in the calendar year.

Kunlun Energy (KLYCY - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 31.9%.

Over the past three months, Kunlun Energy's consensus EPS estimate for the current year has increased 1.9%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Hess Midstream Partners LP belongs to the Energy and Pipeline - Master Limited Partnerships industry, which includes 3 individual stocks and currently sits at #3 in the Zacks Industry Rank. On average, stocks in this group have gained 11% this year, meaning that HESM is performing better in terms of year-to-date returns.

In contrast, Kunlun Energy falls under the Oil and Gas - Exploration and Production - International industry. Currently, this industry has 10 stocks and is ranked #84. Since the beginning of the year, the industry has moved -10.4%.

Investors with an interest in Oils-Energy stocks should continue to track Hess Midstream Partners LP and Kunlun Energy. These stocks will be looking to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hess Midstream Partners LP (HESM) - free report >>

Kunlun Energy (KLYCY) - free report >>

Published in