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Are Utilities Stocks Lagging ONE Gas (OGS) 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. ONE Gas (OGS - 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.

ONE Gas is a member of our Utilities group, which includes 108 different companies and currently sits at #8 in the Zacks Sector Rank. 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 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. ONE Gas is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for OGS' full-year earnings has moved 1.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, OGS has moved about 16.7% on a year-to-date basis. In comparison, Utilities companies have returned an average of 15.3%. This shows that ONE Gas is outperforming its peers so far this year.

Telecom Italia (TIIAY - 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 106.1%.

Over the past three months, Telecom Italia's consensus EPS estimate for the current year has increased 100%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, ONE Gas is a member of the Utility - Gas Distribution industry, which includes 14 individual companies and currently sits at #153 in the Zacks Industry Rank. On average, this group has gained an average of 9.5% so far this year, meaning that OGS is performing better in terms of year-to-date returns.

On the other hand, Telecom Italia belongs to the Diversified Communication Services industry. This 19-stock industry is currently ranked #169. The industry has moved +19.7% year to date.

Going forward, investors interested in Utilities stocks should continue to pay close attention to ONE Gas and Telecom Italia as they could maintain their solid performance.


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