Are Utilities Stocks Lagging Algonquin Power & Utilities (AQN) This Year?

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Algonquin Power & Utilities (AQN) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Algonquin Power & Utilities is a member of the Utilities sector. This group includes 107 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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. Algonquin Power & Utilities is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AQN's full-year earnings has moved 0.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, AQN has moved about 5.9% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 3% on average. This means that Algonquin Power & Utilities is outperforming the sector as a whole this year.

Another stock in the Utilities sector, Avista (AVA), has outperformed the sector so far this year. The stock's year-to-date return is 7.5%.

For Avista, the consensus EPS estimate for the current year has increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Algonquin Power & Utilities belongs to the Utility - Electric Power industry, a group that includes 58 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, stocks in this group have gained 3% this year, meaning that AQN is performing better in terms of year-to-date returns. Avista is also part of the same industry.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Algonquin Power & Utilities and Avista as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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