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Is Shenandoah Telecommunications (SHEN) Stock Outpacing Its Utilities Peers This Year?

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For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Shenandoah Telecommunications (SHEN - Free Report) 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? 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.

Shenandoah Telecommunications is one of 125 individual stocks in the Utilities sector. Collectively, these companies sit at #8 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. SHEN is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for SHEN's full-year earnings has moved 59.30% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, SHEN has returned 23.96% so far this year. In comparison, Utilities companies have returned an average of -1.06%. This means that Shenandoah Telecommunications is performing better than its sector in terms of year-to-date returns.

Looking more specifically, SHEN belongs to the Diversified Communication Services industry, which includes 18 individual stocks and currently sits at #46 in the Zacks Industry Rank. This group has lost an average of 13.33% so far this year, so SHEN is performing better in this area.

Investors with an interest in Utilities stocks should continue to track SHEN. The stock will be looking to continue its solid performance.


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