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

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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Atmos Energy (ATO - 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.

Atmos Energy 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 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 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 0.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ATO has returned about 9.4% since the start of the calendar year. In comparison, Utilities companies have returned an average of 6.3%. This means that Atmos Energy is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is UGI (UGI - Free Report) . The stock has returned 28.3% year-to-date.

For UGI, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Atmos Energy is a member of the Utility - Gas Distribution industry, which includes 14 individual companies and currently sits at #27 in the Zacks Industry Rank. On average, this group has lost an average of 3.7% so far this year, meaning that ATO is performing better in terms of year-to-date returns. UGI is also part of the same industry.

Investors with an interest in Utilities stocks should continue to track Atmos Energy and UGI. These stocks will be looking to continue their solid performance.

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