The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Consolidated Edison (ED) 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.
Consolidated Edison is one of 107 individual stocks in the Utilities sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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 Edison is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ED's full-year earnings has moved 0.2% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ED has gained about 14.5% so far this year. Meanwhile, the Utilities sector has returned an average of 11.1% on a year-to-date basis. As we can see, Consolidated Edison is performing better than its sector in the calendar year.
Another Utilities stock, which has outperformed the sector so far this year, is Entergy (ETR). The stock has returned 13.7% year-to-date.
The consensus estimate for Entergy's current year EPS has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Consolidated Edison belongs to the Utility - Electric Power industry, which includes 58 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 12.1% so far this year, so ED is performing better in this area. Entergy is also part of the same industry.
Investors interested in the Utilities sector may want to keep a close eye on Consolidated Edison and Entergy as they attempt to continue their solid performance.
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Consolidated Edison Inc (ED): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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