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Is Atmos Energy (ATO) Stock Outpacing Its Utilities Peers 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. 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? Let's take a closer look at the stock's year-to-date performance to find out.

Atmos Energy is one of 105 individual stocks in the Utilities sector. Collectively, these companies sit at #7 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 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).

The Zacks Consensus Estimate for ATO's full-year earnings has moved 0.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ATO has gained about 11.5% so far this year. Meanwhile, the Utilities sector has returned an average of 10.8% on a year-to-date basis. This shows that Atmos Energy is outperforming its peers so far 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 15%.

The consensus estimate for PPL's current year EPS has increased 0.6% 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 14 individual companies and currently sits at #42 in the Zacks Industry Rank. This group has gained an average of 8.2% 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 #89. The industry has moved +14.2% year to date.

Atmos Energy and PPL could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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