For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Energias de Portugal (EDPFY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
Energias de Portugal 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 gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Energias de Portugal is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for EDPFY's full-year earnings has moved 3.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, EDPFY has gained about 35.5% so far this year. At the same time, Utilities stocks have gained an average of 11.5%. This means that Energias de Portugal is outperforming the sector as a whole this year.
Another Utilities stock, which has outperformed the sector so far this year, is Fortis (FTS). The stock has returned 19.2% year-to-date.
For Fortis, the consensus EPS estimate for the current year has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Energias de Portugal belongs to the Utility - Electric Power industry, a group that includes 59 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 10.8% so far this year, meaning that EDPFY is performing better in terms of year-to-date returns. Fortis is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Energias de Portugal and Fortis. These stocks will be looking to continue their solid performance.
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Energias de Portugal (EDPFY): Free Stock Analysis Report Fortis (FTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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