Back to top

Image: Bigstock

Is Atmos Energy (ATO) Outperforming Other Utilities Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Atmos Energy (ATO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Atmos Energy is a member of our Utilities group, which includes 104 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 0.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ATO has moved about 2% on a year-to-date basis. At the same time, Utilities stocks have gained an average of 0.4%. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.

Primo (PRMW - 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 20.9%.

Over the past three months, Primo's consensus EPS estimate for the current year has increased 37.2%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual companies and currently sits at #183 in the Zacks Industry Rank. This group has lost an average of 0.7% so far this year, so ATO is performing better in this area.

Primo, however, belongs to the Utility - Water Supply industry. Currently, this 13-stock industry is ranked #16. The industry has moved -3.4% so far this year.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Atmos Energy Corporation (ATO) - free report >>

Primo Water Corporation (PRMW) - free report >>

Published in