Is Telefonica Brasil (VIV) Outperforming 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. Has Telefonica Brasil (VIV) been one of those stocks this year? 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.
Telefonica Brasil is one of 121 individual stocks in the Utilities sector. Collectively, these companies sit at #4 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 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. VIV is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for VIV's full-year earnings has moved 3.43% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, VIV has moved about 5.03% on a year-to-date basis. In comparison, Utilities companies have returned an average of 1.92%. As we can see, Telefonica Brasil is performing better than its sector in the calendar year.
Looking more specifically, VIV belongs to the Diversified Communication Services industry, a group that includes 16 individual stocks and currently sits at #48 in the Zacks Industry Rank. This group has gained an average of 2.63% so far this year, so VIV is performing better in this area.
Going forward, investors interested in Utilities stocks should continue to pay close attention to VIV as it looks to continue its solid performance.
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