Are Utilities Stocks Lagging Atmos Energy (ATO) This Year?
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Atmos Energy (ATO) 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.
Atmos Energy 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 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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 1.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ATO has gained about 1.8% so far this year. At the same time, Utilities stocks have lost an average of 3.6%. This means that Atmos Energy is outperforming the sector as a whole this year.
One other Utilities stock that has outperformed the sector so far this year is Deutsche Telekom AG (DTEGY). The stock is up 0.7% year-to-date.
For Deutsche Telekom AG, the consensus EPS estimate for the current year has increased 4.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual companies and currently sits at #165 in the Zacks Industry Rank. On average, stocks in this group have lost 2.6% this year, meaning that ATO is performing better in terms of year-to-date returns.
On the other hand, Deutsche Telekom AG belongs to the Diversified Communication Services industry. This 13-stock industry is currently ranked #33. The industry has moved +10.9% year to date.
Investors interested in the Utilities sector may want to keep a close eye on Atmos Energy and Deutsche Telekom AG as they attempt to continue their solid performance.
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