For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Oklo Inc. (OKLO) 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.
Oklo Inc. is a member of the Oils-Energy sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #8. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Oklo Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for OKLO's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, OKLO has returned 23.7% so far this year. At the same time, Oils-Energy stocks have lost an average of 1.9%. This shows that Oklo Inc. is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Coterra Energy (CTRA). The stock is up 2.2% year-to-date.
In Coterra Energy's case, the consensus EPS estimate for the current year increased 10.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Oklo Inc. belongs to the Alternative Energy - Other industry, a group that includes 47 individual stocks and currently sits at #81 in the Zacks Industry Rank. Stocks in this group have lost about 2.3% so far this year, so OKLO is performing better this group in terms of year-to-date returns.
Coterra Energy, however, belongs to the Oil and Gas - Exploration and Production - United States industry. Currently, this 34-stock industry is ranked #32. The industry has moved -24.2% so far this year.
Investors with an interest in Oils-Energy stocks should continue to track Oklo Inc. and Coterra Energy. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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