For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has FirstEnergy (FE) 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.
FirstEnergy is a member of our Utilities group, which includes 107 different companies and currently sits at #5 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 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. FirstEnergy is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FE's full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, FE has moved about 9.1% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 8.9% on average. This shows that FirstEnergy is outperforming its peers so far this year.
Another stock in the Utilities sector, Telefonica Brasil (VIV), has outperformed the sector so far this year. The stock's year-to-date return is 34.2%.
In Telefonica Brasil's case, the consensus EPS estimate for the current year increased 7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, FirstEnergy belongs to the Utility - Electric Power industry, which includes 58 individual stocks and currently sits at #86 in the Zacks Industry Rank. This group has gained an average of 9.5% so far this year, so FE is slightly underperforming its industry in this area.
In contrast, Telefonica Brasil falls under the Diversified Communication Services industry. Currently, this industry has 18 stocks and is ranked #44. Since the beginning of the year, the industry has moved +7.6%.
Investors interested in the Utilities sector may want to keep a close eye on FirstEnergy and Telefonica Brasil as they attempt to continue their solid performance.
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FirstEnergy Corporation (FE): Free Stock Analysis Report Telefonica Brasil S.A. (VIV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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