For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is NiSource (NI) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
NiSource 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 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 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. NiSource is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NI's full-year earnings has moved 0.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NI has returned 12.6% so far this year. In comparison, Utilities companies have returned an average of 10.2%. This means that NiSource is outperforming the sector as a whole this year.
Another Utilities stock, which has outperformed the sector so far this year, is Sabesp (SBS). The stock has returned 17.2% year-to-date.
Over the past three months, Sabesp's consensus EPS estimate for the current year has increased 1.6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, NiSource belongs to the Utility - Electric Power industry, a group that includes 58 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 11% so far this year, so NI is performing better in this area.
Sabesp, however, belongs to the Utility - Water Supply industry. Currently, this 11-stock industry is ranked #33. The industry has moved +7.1% so far this year.
NiSource and Sabesp could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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NiSource, Inc (NI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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