The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Algonquin Power & Utilities (AQN) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.
Algonquin Power & Utilities is a member of our Utilities group, which includes 108 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Algonquin Power & Utilities is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AQN's full-year earnings has moved 8.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AQN has returned 34.8% so far this year. In comparison, Utilities companies have returned an average of 13.4%. This means that Algonquin Power & Utilities is outperforming the sector as a whole this year.
Brookfield Renewable Energy Partners (BEP) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15.3%.
For Brookfield Renewable Energy Partners, the consensus EPS estimate for the current year has increased 13.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Algonquin Power & Utilities belongs to the Utility - Electric Power industry, which includes 59 individual stocks and currently sits at #81 in the Zacks Industry Rank. On average, stocks in this group have gained 14.1% this year, meaning that AQN is performing better in terms of year-to-date returns. Brookfield Renewable Energy Partners is also part of the same industry.
Going forward, investors interested in Utilities stocks should continue to pay close attention to Algonquin Power & Utilities and Brookfield Renewable Energy Partners as they could maintain their solid performance.
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Algonquin Power & Utilities Corp. (AQN): Free Stock Analysis Report Brookfield Renewable Partners L.P. (BEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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