Back to top

Image: Bigstock

Are Utilities Stocks Lagging Ameren (AEE) 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. Has Ameren (AEE - 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.

Ameren is one of 105 individual stocks in the Utilities sector. Collectively, these companies sit at #7 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Ameren is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AEE's full-year earnings has moved 0.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that AEE has returned about 12.3% since the start of the calendar year. At the same time, Utilities stocks have gained an average of 10.4%. This means that Ameren is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is Cemig (CIG - Free Report) . The stock has returned 21% year-to-date.

For Cemig, the consensus EPS estimate for the current year has increased 23.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Ameren is a member of the Utility - Electric Power industry, which includes 59 individual companies and currently sits at #93 in the Zacks Industry Rank. This group has gained an average of 12.6% so far this year, so AEE is slightly underperforming its industry in this area. Cemig is also part of the same industry.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Ameren and Cemig as they could maintain their solid performance.


See More Zacks Research for These Tickers


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


Ameren Corporation (AEE) - free report >>

Comp En De Mn Cemig ADS (CIG) - free report >>

Published in