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Is American Electric Power (AEP) Outperforming 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 a member of our Utilities group, which includes 108 different companies and currently sits at #4 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. 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 is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, AEP has returned 17.5% so far this year. Meanwhile, stocks in the Utilities group have gained about 6.6% on average. This means that American Electric Power is outperforming the sector as a whole this year.

Another stock in the Utilities sector, WEC Energy Group (WEC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 9.5%.

For WEC Energy Group, the consensus EPS estimate for the current year has increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, American Electric Power is a member of the Utility - Electric Power industry, which includes 61 individual companies and currently sits at #76 in the Zacks Industry Rank. On average, stocks in this group have gained 7.5% 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 with an interest in Utilities stocks should continue to track American Electric Power and WEC Energy Group. These stocks will be looking to continue their solid performance.


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

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