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Are Utilities Stocks Lagging Atmos Energy (ATO) This Year?

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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 - Free Report) 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.

Atmos Energy is a member of our Utilities group, which includes 105 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 0.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ATO has gained about 22.1% so far this year. Meanwhile, stocks in the Utilities group have gained about 18.3% on average. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.

One other Utilities stock that has outperformed the sector so far this year is Empresa (EDN - Free Report) . The stock is up 36.7% year-to-date.

Over the past three months, Empresa's consensus EPS estimate for the current year has increased 101.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, this group has gained an average of 16.3% so far this year, meaning that ATO is performing better in terms of year-to-date returns.

On the other hand, Empresa belongs to the Utility - Electric Power industry. This 60-stock industry is currently ranked #99. The industry has moved +21.6% year to date.

Investors interested in the Utilities sector may want to keep a close eye on Atmos Energy and Empresa as they attempt to continue their solid performance.


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Atmos Energy Corporation (ATO) - free report >>

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