Is Archrock (AROC) Outperforming Other Oils-Energy Stocks This Year?

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Archrock Inc. (AROC) 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.

Archrock Inc. is one of 234 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #15 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Archrock Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AROC's full-year earnings has moved 6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, AROC has gained about 26.3% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 20.1% on a year-to-date basis. This means that Archrock Inc. is outperforming the sector as a whole this year.

Another stock in the Oils-Energy sector, National Energy Services Reunited (NESR), has outperformed the sector so far this year. The stock's year-to-date return is 54.5%.

In National Energy Services Reunited's case, the consensus EPS estimate for the current year increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Archrock Inc. belongs to the Oil and Gas - Field Services industry, a group that includes 19 individual companies and currently sits at #70 in the Zacks Industry Rank. Stocks in this group have gained about 33.6% so far this year, so AROC is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, National Energy Services Reunited falls under the Oil and Gas - Mechanical and and Equipment industry. Currently, this industry has 12 stocks and is ranked #145. Since the beginning of the year, the industry has moved +25.6%.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Archrock Inc. and National Energy Services Reunited as they could maintain their solid performance.