Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Middlesex Water (MSEX) 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? 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.
Middlesex Water is one of 106 individual stocks in the Utilities sector. Collectively, these companies sit at #1 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. Middlesex Water is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MSEX's full-year earnings has moved 4.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, MSEX has returned 14.1% so far this year. At the same time, Utilities stocks have gained an average of 6.4%. This means that Middlesex Water is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, National Grid (NGG), has outperformed the sector so far this year. The stock's year-to-date return is 18.1%.
The consensus estimate for National Grid'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, Middlesex Water belongs to the Utility - Water Supply industry, which includes 12 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, this group has gained an average of 17.8% so far this year, meaning that MSEX is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, National Grid belongs to the Utility - Electric Power industry. This 60-stock industry is currently ranked #47. The industry has moved +6.8% year to date.
Investors interested in the Utilities sector may want to keep a close eye on Middlesex Water and National Grid as they attempt to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Middlesex Water Company (MSEX): Free Stock Analysis Report National Grid Transco, PLC (NGG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
