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Is Companhia de saneamento Basico Do Estado De Sao Paulo Sabesp (SBS) 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. Sabesp (SBS - 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.

Sabesp is a member of the Utilities sector. This group includes 108 individual stocks and currently holds a Zacks Sector Rank of #7. 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. Sabesp is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for SBS' full-year earnings has moved 29.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that SBS has returned about 68.7% since the start of the calendar year. At the same time, Utilities stocks have gained an average of 12.9%. This means that Sabesp is performing better than its sector in terms of year-to-date returns.

Telenor ASA (TELNY - Free Report) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 47.8%.

For Telenor ASA, the consensus EPS estimate for the current year has increased 9.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Sabesp belongs to the Utility - Water Supply industry, a group that includes 11 individual companies and currently sits at #35 in the Zacks Industry Rank. On average, stocks in this group have gained 16.7% this year, meaning that SBS is performing better in terms of year-to-date returns.

On the other hand, Telenor ASA belongs to the Diversified Communication Services industry. This 19-stock industry is currently ranked #172. The industry has moved +21% year to date.

Sabesp and Telenor ASA could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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