Back to top

Image: Bigstock

Is Consolidated Edison (ED) Outperforming Other Utilities Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Consolidated Edison (ED - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Consolidated Edison is a member of the Utilities sector. This group includes 105 individual stocks and currently holds a Zacks Sector Rank of #8. 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).

Over the past three months, the Zacks Consensus Estimate for ED's full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ED has gained about 0.6% so far this year. Meanwhile, the Utilities sector has returned an average of -9.1% on a year-to-date basis. This shows that Consolidated Edison is outperforming its peers so far this year.

National Fuel Gas (NFG - 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 3.1%.

Over the past three months, National Fuel Gas' consensus EPS estimate for the current year has increased 5.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Consolidated Edison belongs to the Utility - Electric Power industry, which includes 58 individual stocks and currently sits at #132 in the Zacks Industry Rank. This group has lost an average of 9.1% so far this year, so ED is performing better in this area.

National Fuel Gas, however, belongs to the Utility - Gas Distribution industry. Currently, this 15-stock industry is ranked #91. The industry has moved +3.9% so far this year.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Consolidated Edison and National Fuel Gas as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Consolidated Edison Inc (ED) - free report >>

National Fuel Gas Company (NFG) - free report >>

Published in