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Are Utilities Stocks Lagging Atmos Energy (ATO) 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 Atmos Energy (ATO - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Atmos Energy is a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ATO's full-year earnings has moved 0.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ATO has returned 12.5% so far this year. Meanwhile, stocks in the Utilities group have gained about 10.1% on average. This shows that Atmos Energy is outperforming its peers so far this year.

One other Utilities stock that has outperformed the sector so far this year is UGI (UGI - Free Report) . The stock is up 28.7% year-to-date.

Over the past three months, UGI's consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #41 in the Zacks Industry Rank. This group has gained an average of 0.3% so far this year, so ATO is performing better in this area. 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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