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Has Atmos Energy (ATO) Outpaced Other Utilities Stocks This Year?

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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Atmos Energy (ATO - 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? 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 108 individual stocks and currently holds a Zacks Sector Rank of #9. 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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATO's full-year earnings has moved 0.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ATO has gained about 15.1% so far this year. Meanwhile, the Utilities sector has returned an average of 6% on a year-to-date basis. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.

NiSource (NI - Free Report) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15.1%.

For NiSource, the consensus EPS estimate for the current year has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Atmos Energy is a member of the Utility - Gas Distribution industry, which includes 15 individual companies and currently sits at #98 in the Zacks Industry Rank. This group has gained an average of 16.3% so far this year, so ATO is slightly underperforming its industry in this area.

In contrast, NiSource falls under the Utility - Electric Power industry. Currently, this industry has 61 stocks and is ranked #108. Since the beginning of the year, the industry has moved +4.9%.

Investors interested in the Utilities sector may want to keep a close eye on Atmos Energy and NiSource as they attempt to continue their solid performance.


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