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Has CMS Energy (CMS) Outpaced Other Utilities Stocks This Year?

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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has CMS Energy (CMS - Free Report) been one of those stocks this year? 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.

CMS Energy is a member of our Utilities group, which includes 108 different companies and currently sits at #4 in the Zacks Sector Rank. 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 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. CMS Energy is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CMS' full-year earnings has moved 0.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CMS has returned 6.6% so far this year. In comparison, Utilities companies have returned an average of 4.8%. As we can see, CMS Energy is performing better than its sector in the calendar year.

Atmos Energy (ATO - 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 10.9%.

In Atmos Energy's case, the consensus EPS estimate for the current year increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, CMS Energy is a member of the Utility - Electric Power industry, which includes 61 individual companies and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 5.5% so far this year, so CMS is performing better this group in terms of year-to-date returns.

Atmos Energy, however, belongs to the Utility - Gas Distribution industry. Currently, this 15-stock industry is ranked #60. The industry has moved +16.2% so far this year.

Investors with an interest in Utilities stocks should continue to track CMS Energy and Atmos Energy. These stocks will be looking to continue their solid performance.


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