The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Atmos Energy (ATO) one of those stocks right now? 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.
Atmos Energy is a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #7. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ATO's full-year earnings has moved 0.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ATO has moved about 22.2% on a year-to-date basis. At the same time, Utilities stocks have gained an average of 16.6%. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.
Energias de Portugal (EDPFY) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 50%.
For Energias de Portugal, the consensus EPS estimate for the current year has increased 6.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #164 in the Zacks Industry Rank. On average, stocks in this group have gained 10.6% this year, meaning that ATO is performing better in terms of year-to-date returns.
In contrast, Energias de Portugal falls under the Utility - Electric Power industry. Currently, this industry has 59 stocks and is ranked #79. Since the beginning of the year, the industry has moved +17%.
Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and Energias de Portugal as they could maintain their solid performance.
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Atmos Energy Corporation (ATO): Free Stock Analysis Report Energias de Portugal (EDPFY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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