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Is Atmos Energy (ATO) Outperforming Other Utilities Stocks This Year?

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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Atmos Energy (ATO - Free Report) been one of those stocks this year? 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 one of 105 individual stocks in the Utilities sector. Collectively, these companies sit at #8 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 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 90 days, the Zacks Consensus Estimate for ATO's full-year earnings has moved 0.5% 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 20.8% so far this year. Meanwhile, the Utilities sector has returned an average of 13.3% on a year-to-date basis. As we can see, Atmos Energy is performing better than its sector in the calendar year.

One other Utilities stock that has outperformed the sector so far this year is Vistra Corp. (VST - Free Report) . The stock is up 279% year-to-date.

In Vistra Corp.'s case, the consensus EPS estimate for the current year increased 7.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #137 in the Zacks Industry Rank. This group has gained an average of 16% so far this year, so ATO is performing better in this area.

On the other hand, Vistra Corp. belongs to the Utility - Electric Power industry. This 60-stock industry is currently ranked #136. The industry has moved +16.2% year to date.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and Vistra Corp. as they could maintain their solid performance.


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