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Is NiSource (NI) 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. Is NiSource (NI - 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.

NiSource is a member of the Utilities sector. This group includes 108 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. NiSource is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NI's full-year earnings has moved 0.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that NI has returned about 14% since the start of the calendar year. Meanwhile, the Utilities sector has returned an average of 11.2% on a year-to-date basis. This means that NiSource is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is Telefonica (TEF - Free Report) . The stock has returned 34.3% year-to-date.

For Telefonica, the consensus EPS estimate for the current year has increased 21.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, NiSource belongs to the Utility - Electric Power industry, which includes 59 individual stocks and currently sits at #74 in the Zacks Industry Rank. Stocks in this group have gained about 11.2% so far this year, so NI is performing better this group in terms of year-to-date returns.

Telefonica, however, belongs to the Diversified Communication Services industry. Currently, this 19-stock industry is ranked #11. The industry has moved +17.9% so far this year.

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


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