For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Ameren (AEE) 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.
Ameren is one of 111 individual stocks in the Utilities sector. Collectively, these companies sit at #15 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. Ameren is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AEE's full-year earnings has moved 0.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AEE has returned 9.7% so far this year. Meanwhile, the Utilities sector has returned an average of 4.6% on a year-to-date basis. This means that Ameren is performing better than its sector in terms of year-to-date returns.
Pinnacle West (PNW) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.7%.
For Pinnacle West, the consensus EPS estimate for the current year has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ameren belongs to the Utility - Electric Power industry, which includes 63 individual stocks and currently sits at #175 in the Zacks Industry Rank. On average, stocks in this group have gained 5.8% this year, meaning that AEE is performing better in terms of year-to-date returns. Pinnacle West is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Ameren and Pinnacle West. These stocks will be looking to continue their solid performance.
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