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Is FirstEnergy (FE) Outperforming 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 FirstEnergy (FE - Free Report) been one of those stocks this year? 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.

FirstEnergy is one of 105 individual stocks in the Utilities sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. 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. FirstEnergy is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FE's full-year earnings has moved 0.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that FE has returned about 20.2% since the start of the calendar year. At the same time, Utilities stocks have gained an average of 18.3%. This shows that FirstEnergy is outperforming its peers so far this year.

One other Utilities stock that has outperformed the sector so far this year is NiSource (NI - Free Report) . The stock is up 30.6% year-to-date.

The consensus estimate for NiSource's current year EPS has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, FirstEnergy belongs to the Utility - Electric Power industry, a group that includes 60 individual stocks and currently sits at #47 in the Zacks Industry Rank. This group has gained an average of 22.9% so far this year, so FE is slightly underperforming its industry in this area. NiSource is also part of the same industry.

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


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