For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Atmos Energy (ATO) 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.
Atmos Energy 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 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 2.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ATO has returned 11% so far this year. Meanwhile, stocks in the Utilities group have gained about 10.9% on average. This shows that Atmos Energy is outperforming its peers so far this year.
Exelon (EXC) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.3%.
Over the past three months, Exelon's consensus EPS estimate for the current year has increased 1%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual companies and currently sits at #181 in the Zacks Industry Rank. On average, this group has gained an average of 9.7% so far this year, meaning that ATO is performing better in terms of year-to-date returns.
In contrast, Exelon falls under the Utility - Electric Power industry. Currently, this industry has 58 stocks and is ranked #81. Since the beginning of the year, the industry has moved +11.6%.
Investors with an interest in Utilities stocks should continue to track Atmos Energy and Exelon. These stocks will be looking to continue their solid performance.
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Atmos Energy Corporation (ATO): Free Stock Analysis Report Exelon Corporation (EXC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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