Are Utilities Stocks Lagging Atmos Energy (ATO) This Year?
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) 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? 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.
Atmos Energy is one of 106 individual stocks in the Utilities sector. Collectively, these companies sit at #9 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 2.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ATO has returned 3.3% so far this year. At the same time, Utilities stocks have lost an average of 1.4%. As we can see, Atmos Energy is performing better than its sector in the calendar year.
Another stock in the Utilities sector, DTE Energy (DTE), has outperformed the sector so far this year. The stock's year-to-date return is 5.5%.
For DTE Energy, the consensus EPS estimate for the current year has increased 0.1% over the past three months. 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 #68 in the Zacks Industry Rank. This group has gained an average of 3.9% so far this year, so ATO is slightly underperforming its industry in this area.
On the other hand, DTE Energy belongs to the Utility - Electric Power industry. This 59-stock industry is currently ranked #89. The industry has moved -3% year to date.
Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and DTE Energy as they could maintain their solid performance.
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Atmos Energy Corporation (ATO) : Free Stock Analysis Report
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