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Has American Electric Power (AEP) Outpaced Other Utilities Stocks 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. American Electric Power (AEP - 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? 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 one of 108 individual stocks in the Utilities sector. Collectively, these companies sit at #5 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Electric Power is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AEP's full-year earnings has moved 0% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AEP has returned about 9.7% since the start of the calendar year. Meanwhile, the Utilities sector has returned an average of 2.1% on a year-to-date basis. This means that American Electric Power is outperforming the sector as a whole this year.

One other Utilities stock that has outperformed the sector so far this year is WEC Energy Group (WEC - Free Report) . The stock is up 6.1% year-to-date.

For WEC Energy Group, the consensus EPS estimate for the current year has increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, American Electric Power belongs to the Utility - Electric Power industry, a group that includes 61 individual companies and currently sits at #92 in the Zacks Industry Rank. On average, this group has gained an average of 2.3% 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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