For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Ameren (AEE) 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.
Ameren is one of 104 companies in the Utilities group. The Utilities group currently sits at #4 within 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ameren is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AEE's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AEE has returned 9% so far this year. In comparison, Utilities companies have returned an average of 2.6%. This shows that Ameren is outperforming its peers so far this year.
Another Utilities stock, which has outperformed the sector so far this year, is Atmos Energy (ATO). The stock has returned 6.5% year-to-date.
In Atmos Energy's case, the consensus EPS estimate for the current year increased 0% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Ameren is a member of the Utility - Electric Power industry, which includes 60 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have gained 3.3% this year, meaning that AEE is performing better in terms of year-to-date returns.
Atmos Energy, however, belongs to the Utility - Gas Distribution industry. Currently, this 13-stock industry is ranked #62. The industry has moved -8% so far this year.
Investors with an interest in Utilities stocks should continue to track Ameren and Atmos Energy. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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