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Are Utilities Stocks Lagging Fortis (FTS) 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. Has Fortis (FTS - 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.

Fortis is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #2. 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. Fortis is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for FTS' full-year earnings has moved 4.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FTS has returned 16.3% so far this year. In comparison, Utilities companies have returned an average of 7.4%. This shows that Fortis is outperforming its peers so far this year.

Another Utilities stock, which has outperformed the sector so far this year, is Middlesex Water (MSEX - Free Report) . The stock has returned 8.7% year-to-date.

Over the past three months, Middlesex Water's consensus EPS estimate for the current year has increased 4.6%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Fortis is a member of the Utility - Electric Power industry, which includes 60 individual companies and currently sits at #55 in the Zacks Industry Rank. On average, stocks in this group have gained 7.5% this year, meaning that FTS is performing better in terms of year-to-date returns.

Middlesex Water, however, belongs to the Utility - Water Supply industry. Currently, this 12-stock industry is ranked #88. The industry has moved +16.9% so far this year.

Investors interested in the Utilities sector may want to keep a close eye on Fortis and Middlesex Water as they attempt to continue their solid performance.


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