For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is AES (AES) one of those stocks right now? 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.
AES is one of 104 individual stocks in the Utilities sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AES is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AES' full-year earnings has moved 0.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AES has returned 16.8% so far this year. At the same time, Utilities stocks have lost an average of 2.3%. This means that AES is performing better than its sector in terms of year-to-date returns.
RWE AG (RWEOY) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.7%.
In RWE AG's case, the consensus EPS estimate for the current year increased 20.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, AES is a member of the Utility - Electric Power industry, which includes 58 individual companies and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have lost about 1.8% so far this year, so AES is performing better this group in terms of year-to-date returns. RWE AG is also part of the same industry.
Investors interested in the Utilities sector may want to keep a close eye on AES and RWE AG as they attempt to continue their solid performance.
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