For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is American States Water (AWR) one of those stocks right now? 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.
American States Water is a member of the Utilities sector. This group includes 110 individual stocks and currently holds a Zacks Sector Rank of #13. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. American States Water is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AWR's full-year earnings has moved 3.3% 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 AWR has returned about 6.4% since the start of the calendar year. In comparison, Utilities companies have returned an average of 5.3%. This means that American States Water is outperforming the sector as a whole this year.
Another Utilities stock, which has outperformed the sector so far this year, is Sabesp (SBS). The stock has returned 10.1% year-to-date.
In Sabesp's case, the consensus EPS estimate for the current year increased 234.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, American States Water belongs to the Utility - Water Supply industry, a group that includes 11 individual stocks and currently sits at #175 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so AWR is performing better in this area. Sabesp is also part of the same industry.
American States Water and Sabesp could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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American States Water Company (AWR): Free Stock Analysis Report
Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).