Has Consolidated Edison (ED) Outpaced Other Utilities Stocks 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? 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.
Consolidated Edison is a member of the Utilities sector. This group includes 108 individual stocks and currently holds a Zacks Sector Rank of #10. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 90 days, the Zacks Consensus Estimate for ED's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, ED has gained about 11.5% so far this year. Meanwhile, stocks in the Utilities group have gained about 1.9% 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 South Jersey Industries (SJI). The stock is up 31.2% year-to-date.
For South Jersey Industries, the consensus EPS estimate for the current year has increased 1.5% over the past three months. 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 61 individual companies and currently sits at #162 in the Zacks Industry Rank. On average, this group has gained an average of 0.8% so far this year, meaning that ED is performing better in terms of year-to-date returns.
In contrast, South Jersey Industries falls under the Utility - Gas Distribution industry. Currently, this industry has 15 stocks and is ranked #69. Since the beginning of the year, the industry has moved +12.6%.
Going forward, investors interested in Utilities stocks should continue to pay close attention to Consolidated Edison and South Jersey Industries as they could maintain their solid performance.
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