Are Utilities Stocks Lagging Consolidated Edison (ED) This Year?

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? Let's take a closer look at the stock's year-to-date performance to find out.

Consolidated Edison is one of 110 individual stocks in the Utilities sector. Collectively, these companies sit at #12 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. 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 0.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ED has moved about 8.5% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 5.8% on average. This means that Consolidated Edison is performing better than its sector in terms of year-to-date returns.

Another stock in the Utilities sector, Energias de Portugal (EDPFY), has outperformed the sector so far this year. The stock's year-to-date return is 12.6%.

Over the past three months, Energias de Portugal's consensus EPS estimate for the current year has increased 0.3%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Consolidated Edison is a member of the Utility - Electric Power industry, which includes 60 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, stocks in this group have gained 6.1% this year, meaning that ED is performing better in terms of year-to-date returns. Energias de Portugal is also part of the same industry.

Investors with an interest in Utilities stocks should continue to track Consolidated Edison and Energias de Portugal. These stocks will be looking to continue their solid performance.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research