Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is NiSource (NI) 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.
NiSource is one of 104 companies in the Utilities group. The Utilities group currently sits at #7 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 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. NiSource is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NI's full-year earnings has moved 2.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that NI has returned about 7.7% since the start of the calendar year. Meanwhile, stocks in the Utilities group have gained about 2% on average. This shows that NiSource is outperforming its peers so far this year.
Another stock in the Utilities sector, Sabesp (SBS), has outperformed the sector so far this year. The stock's year-to-date return is 19.3%.
Over the past three months, Sabesp's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, NiSource is a member of the Utility - Electric Power industry, which includes 60 individual companies and currently sits at #135 in the Zacks Industry Rank. On average, stocks in this group have gained 2.9% this year, meaning that NI is performing better in terms of year-to-date returns.
In contrast, Sabesp falls under the Utility - Water Supply industry. Currently, this industry has 12 stocks and is ranked #76. Since the beginning of the year, the industry has moved +4.1%.
Investors interested in the Utilities sector may want to keep a close eye on NiSource and Sabesp as they attempt to continue their solid performance.
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