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Are Utilities Stocks Lagging American Electric Power (AEP) This Year?

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For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has American Electric Power (AEP - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.

American Electric Power is a member of the Utilities sector. This group includes 108 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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. American Electric Power is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AEP's full-year earnings has moved 0.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AEP has returned 6.1% so far this year. Meanwhile, the Utilities sector has returned an average of -2.6% on a year-to-date basis. This means that American Electric Power is performing better than its sector in terms of year-to-date returns.

WEC Energy Group (WEC - 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 3.5%.

The consensus estimate for WEC Energy Group's current year EPS has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, American Electric Power belongs to the Utility - Electric Power industry, a group that includes 61 individual stocks and currently sits at #84 in the Zacks Industry Rank. On average, this group has lost an average of 2.5% so far this year, meaning that AEP is performing better in terms of year-to-date returns. WEC Energy Group is also part of the same industry.

Investors interested in the Utilities sector may want to keep a close eye on American Electric Power and WEC Energy Group as they attempt to continue their solid performance.


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American Electric Power Company, Inc. (AEP) - free report >>

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