The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Consolidated Edison (ED) 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.
Consolidated Edison is a member of our Utilities group, which includes 110 different companies and currently sits at #5 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 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. Consolidated Edison is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ED's full-year earnings has moved 1.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ED has returned 6.9% so far this year. Meanwhile, stocks in the Utilities group have gained about 6.4% on average. This shows that Consolidated Edison is outperforming its peers so far this year.
One other Utilities stock that has outperformed the sector so far this year is Otter Tail (OTTR). The stock is up 10.5% year-to-date.
In Otter Tail's case, the consensus EPS estimate for the current year increased 4.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Consolidated Edison belongs to the Utility - Electric Power industry, a group that includes 60 individual stocks and currently sits at #105 in the Zacks Industry Rank. On average, this group has gained an average of 6.4% so far this year, meaning that ED is performing better in terms of year-to-date returns. Otter Tail is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Consolidated Edison and Otter Tail. These stocks will be looking to continue their solid performance.
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Consolidated Edison Inc (ED): Free Stock Analysis Report
Otter Tail Corporation (OTTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).