Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Avista (AVA) 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.
Avista is a member of our Utilities group, which includes 106 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Avista is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AVA's full-year earnings has moved 4.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AVA has returned 9.2% so far this year. Meanwhile, the Utilities sector has returned an average of 6.9% on a year-to-date basis. This shows that Avista is outperforming its peers so far this year.
Another Utilities stock, which has outperformed the sector so far this year, is American Water Works (AWK). The stock has returned 18% year-to-date.
In American Water Works' case, the consensus EPS estimate for the current year increased 0.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Avista is a member of the Utility - Electric Power industry, which includes 60 individual companies and currently sits at #53 in the Zacks Industry Rank. This group has gained an average of 7.2% so far this year, so AVA is performing better in this area.
In contrast, American Water Works falls under the Utility - Water Supply industry. Currently, this industry has 12 stocks and is ranked #84. Since the beginning of the year, the industry has moved +18.6%.
Avista and American Water Works could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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Avista Corporation (AVA): Free Stock Analysis Report American Water Works Company, Inc. (AWK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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