The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is AES (AES) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
AES is a member of the Utilities sector. This group includes 107 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. AES is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AES' full-year earnings has moved 2.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AES has returned about 15.1% since the start of the calendar year. In comparison, Utilities companies have returned an average of 8.3%. As we can see, AES is performing better than its sector in the calendar year.
Another stock in the Utilities sector, Deutsche Telekom AG (DTEGY), has outperformed the sector so far this year. The stock's year-to-date return is 18.4%.
Over the past three months, Deutsche Telekom AG's consensus EPS estimate for the current year has increased 3.1%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, AES is a member of the Utility - Electric Power industry, which includes 58 individual companies and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 11.6% so far this year, so AES is performing better in this area.
On the other hand, Deutsche Telekom AG belongs to the Diversified Communication Services industry. This 18-stock industry is currently ranked #37. The industry has moved +3.2% year to date.
Going forward, investors interested in Utilities stocks should continue to pay close attention to AES and Deutsche Telekom AG as they could maintain their solid performance.
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The AES Corporation (AES): Free Stock Analysis Report Deutsche Telekom AG (DTEGY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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