Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Atmos Energy (ATO) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Atmos Energy is one of 110 individual stocks in the Utilities sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. 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 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 three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 1.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ATO has gained about 7.9% so far this year. In comparison, Utilities companies have returned an average of 5.2%. This shows that Atmos Energy is outperforming its peers so far this year.
One other Utilities stock that has outperformed the sector so far this year is American States Water (AWR). The stock is up 6.5% year-to-date.
For American States Water, the consensus EPS estimate for the current year has increased 6.6% 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 13 individual stocks and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so ATO is performing better in this area.
American States Water, however, belongs to the Utility - Water Supply industry. Currently, this 11-stock industry is ranked #214. The industry has moved -21.9% so far this year.
Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and American States Water as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).