The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Iberdrola S.A. (IBDRY) 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? 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.
Iberdrola S.A. is a member of the Utilities sector. This group includes 111 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Iberdrola S.A. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for IBDRY's full-year earnings has moved 2.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, IBDRY has returned 7.9% so far this year. In comparison, Utilities companies have returned an average of -6.4%. As we can see, Iberdrola S.A. is performing better than its sector in the calendar year.
Another Utilities stock, which has outperformed the sector so far this year, is MYR Group (MYRG). The stock has returned 33.9% year-to-date.
The consensus estimate for MYR Group's current year EPS has increased 8.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Iberdrola S.A. belongs to the Utility - Electric Power industry, a group that includes 63 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, this group has lost an average of 6.4% so far this year, meaning that IBDRY is performing better in terms of year-to-date returns.
On the other hand, MYR Group belongs to the Electric Construction industry. This 2-stock industry is currently ranked #8. The industry has moved -80.2% year to date.
Investors interested in the Utilities sector may want to keep a close eye on Iberdrola S.A. and MYR Group as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).