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Are Oils-Energy Stocks Lagging Braskem (BAK) 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. Braskem (BAK - 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.

Braskem is a member of our Oils-Energy group, which includes 249 different companies and currently sits at #6 in 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 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. Braskem is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BAK's full-year earnings has moved 118.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, BAK has gained about 24.9% so far this year. In comparison, Oils-Energy companies have returned an average of 10.9%. As we can see, Braskem is performing better than its sector in the calendar year.

Kinder Morgan (KMI - 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 13.9%.

In Kinder Morgan'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).

Looking more specifically, Braskem belongs to the Oil and Gas - Integrated - International industry, which includes 14 individual stocks and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 5.3% so far this year, so BAK is performing better this group in terms of year-to-date returns.

Kinder Morgan, however, belongs to the Oil and Gas - Production and Pipelines industry. Currently, this 10-stock industry is ranked #95. The industry has moved +42.8% so far this year.

Investors interested in the Oils-Energy sector may want to keep a close eye on Braskem and Kinder Morgan as they attempt to continue their solid performance.


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