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Has Atmos Energy (ATO) 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. Is Atmos Energy (ATO - Free Report) one of those stocks right now? 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.

Atmos Energy is one of 104 companies in the Utilities group. The Utilities group currently sits at #8 within 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 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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATO's full-year earnings has moved 0.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ATO has gained about 6.7% so far this year. In comparison, Utilities companies have returned an average of 3.7%. As we can see, Atmos Energy is performing better than its sector in the calendar year.

Vistra Corp. (VST - 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 22.8%.

The consensus estimate for Vistra Corp.'s current year EPS has increased 7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 13 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, this group has gained an average of 2% so far this year, meaning that ATO is performing better in terms of year-to-date returns.

On the other hand, Vistra Corp. belongs to the Utility - Electric Power industry. This 60-stock industry is currently ranked #138. The industry has moved +3.6% year to date.

Atmos Energy and Vistra Corp. could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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