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Is SM Energy (SM) Stock Outpacing Its Oils-Energy Peers This Year?

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The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SM Energy (SM - 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? Let's take a closer look at the stock's year-to-date performance to find out.

SM Energy is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #12 within the Zacks Sector Rank. 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. SM Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for SM's full-year earnings has moved 14.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, SM has moved about 16% on a year-to-date basis. In comparison, Oils-Energy companies have returned an average of 3.6%. This means that SM Energy is outperforming the sector as a whole this year.

Another stock in the Oils-Energy sector, Williams Companies, Inc. (The) (WMB - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 23.8%.

In Williams Companies, Inc. (The)'s case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, SM Energy belongs to the Oil and Gas - Exploration and Production - United States industry, which includes 35 individual stocks and currently sits at #174 in the Zacks Industry Rank. On average, this group has gained an average of 1% so far this year, meaning that SM is performing better in terms of year-to-date returns.

In contrast, Williams Companies, Inc. (The) falls under the Oil and Gas - Production and Pipelines industry. Currently, this industry has 9 stocks and is ranked #159. Since the beginning of the year, the industry has moved +13.1%.

SM Energy and Williams Companies, Inc. (The) 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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