Back to top

Image: Bigstock

Is Atmos Energy (ATO) Stock Outpacing Its Utilities Peers This Year?

Read MoreHide Full Article

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. 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? 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.

Atmos Energy is one of 105 companies in the Utilities group. The Utilities group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ATO's full-year earnings has moved 2.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ATO has returned 5.6% so far this year. Meanwhile, stocks in the Utilities group have gained about 4.3% on average. This means that Atmos Energy is outperforming the sector as a whole this year.

Another stock in the Utilities sector, PPL (PPL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 4.4%.

The consensus estimate for PPL's current year EPS has increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, which includes 14 individual stocks and currently sits at #73 in the Zacks Industry Rank. This group has gained an average of 5.2% so far this year, so ATO is performing better in this area.

On the other hand, PPL belongs to the Utility - Electric Power industry. This 59-stock industry is currently ranked #101. The industry has moved +6.3% year to date.

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


See More Zacks Research for These Tickers


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


PPL Corporation (PPL) - free report >>

Atmos Energy Corporation (ATO) - free report >>

Published in