Are Utilities Stocks Lagging Consolidated Edison (ED) 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. Is Consolidated Edison (ED) one of those stocks right now? 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.
Consolidated Edison is a member of our Utilities group, which includes 102 different companies and currently sits at #5 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 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. Consolidated Edison is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ED's full-year earnings has moved 0.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ED has moved about 0.6% on a year-to-date basis. Meanwhile, stocks in the Utilities group have lost about 1.2% on average. This means that Consolidated Edison is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, TransAlta (TAC), has outperformed the sector so far this year. The stock's year-to-date return is 11.8%.
In TransAlta's case, the consensus EPS estimate for the current year increased 55.3% 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 58 individual companies and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have lost about 2.8% so far this year, so ED is performing better this group in terms of year-to-date returns. TransAlta is also part of the same industry.
Consolidated Edison and TransAlta could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
