For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Consolidated Water (CWCO) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Consolidated Water is one of 109 individual stocks in the Utilities sector. Collectively, these companies sit at #4 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. Consolidated Water is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CWCO's full-year earnings has moved 25.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CWCO has returned about 33.5% since the start of the calendar year. In comparison, Utilities companies have returned an average of 17.9%. This means that Consolidated Water is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, Paranaense de Energia (ELP), has outperformed the sector so far this year. The stock's year-to-date return is 76.6%.
Over the past three months, Paranaense de Energia's consensus EPS estimate for the current year has increased 30.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Consolidated Water is a member of the Utility - Water Supply industry, which includes 11 individual companies and currently sits at #66 in the Zacks Industry Rank. On average, stocks in this group have gained 16% this year, meaning that CWCO is performing better in terms of year-to-date returns.
In contrast, Paranaense de Energia falls under the Utility - Electric Power industry. Currently, this industry has 59 stocks and is ranked #63. Since the beginning of the year, the industry has moved +19.2%.
Investors interested in the Utilities sector may want to keep a close eye on Consolidated Water and Paranaense de Energia as they attempt to continue their solid performance.
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Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis Report Companhia Paranaense de Energia (COPEL) (ELP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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