For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has NRG Energy (NRG) 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.
NRG Energy is a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. NRG Energy is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NRG's full-year earnings has moved 3.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, NRG has returned 86.5% so far this year. At the same time, Utilities stocks have gained an average of 17.3%. This means that NRG Energy is performing better than its sector in terms of year-to-date returns.
Sabesp (SBS) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 59.9%.
For Sabesp, the consensus EPS estimate for the current year has increased 9.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, NRG Energy is a member of the Utility - Electric Power industry, which includes 59 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, this group has gained an average of 18.4% so far this year, meaning that NRG is performing better in terms of year-to-date returns.
In contrast, Sabesp falls under the Utility - Water Supply industry. Currently, this industry has 11 stocks and is ranked #16. Since the beginning of the year, the industry has moved +19.4%.
NRG Energy and Sabesp could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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NRG Energy, Inc. (NRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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