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Are Utilities Stocks Lagging American Electric Power (AEP) This Year?

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is American Electric Power (AEP) one of those stocks right now? 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.

American Electric Power is a member of the Utilities sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. American Electric Power is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AEP's full-year earnings has moved 0.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AEP has returned about 7% since the start of the calendar year. Meanwhile, stocks in the Utilities group have lost about 2.7% on average. This shows that American Electric Power is outperforming its peers so far this year.

Pinnacle West (PNW) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.5%.

For Pinnacle West, the consensus EPS estimate for the current year has increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, American Electric Power is a member of the Utility - Electric Power industry, which includes 58 individual companies and currently sits at #67 in the Zacks Industry Rank. This group has lost an average of 2.5% so far this year, so AEP is performing better in this area. Pinnacle West is also part of the same industry.

Investors with an interest in Utilities stocks should continue to track American Electric Power and Pinnacle West. These stocks will be looking to continue their solid performance.

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American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report

Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report

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Zacks Investment Research