Has Comp En De Mn Cemig (CIG) Outpaced Other Utilities Stocks This Year?
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Cemig (CIG) 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.
Cemig is a member of the Utilities sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #2. 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. Cemig is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CIG's full-year earnings has moved 2.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CIG has gained about 2.2% so far this year. In comparison, Utilities companies have returned an average of -2.8%. This means that Cemig is performing better than its sector in terms of year-to-date returns.
One other Utilities stock that has outperformed the sector so far this year is NRG Energy (NRG). The stock is up 1% year-to-date.
For NRG Energy, the consensus EPS estimate for the current year has increased 3.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Cemig is a member of the Utility - Electric Power industry, which includes 58 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, this group has lost an average of 5.4% so far this year, meaning that CIG is performing better in terms of year-to-date returns. NRG Energy is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Cemig and NRG Energy. These stocks will be looking to continue their solid performance.
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Comp En De Mn Cemig ADS (CIG) : Free Stock Analysis Report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
