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Is Centrica (CPYYY) Stock Outpacing Its Utilities Peers 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. Centrica PLC (CPYYY - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.

Centrica PLC is a member of our Utilities group, which includes 106 different companies and currently sits at #1 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 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. Centrica PLC is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CPYYY's full-year earnings has moved 9.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CPYYY has gained about 21.4% so far this year. At the same time, Utilities stocks have gained an average of 5.6%. This means that Centrica PLC is performing better than its sector in terms of year-to-date returns.

Another stock in the Utilities sector, Middlesex Water (MSEX - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 20.2%.

For Middlesex Water, the consensus EPS estimate for the current year has increased 4.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Centrica PLC belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #79 in the Zacks Industry Rank. On average, this group has lost an average of 3.3% so far this year, meaning that CPYYY is performing better in terms of year-to-date returns.

On the other hand, Middlesex Water belongs to the Utility - Water Supply industry. This 12-stock industry is currently ranked #50. The industry has moved +19% year to date.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Centrica PLC and Middlesex Water as they could maintain their solid performance.


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