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Is Centrais Eltricas Brasileiras (EBR) Stock Outpacing Its Utilities Peers 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. Has Eletrobras (EBR - Free Report) been one of those stocks this year? 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.

Eletrobras is one of 109 companies in the Utilities group. The Utilities group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Eletrobras is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for EBR's full-year earnings has moved 12.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, EBR has moved about 68.4% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 17.5% on average. This means that Eletrobras is performing better than its sector in terms of year-to-date returns.

ENGIE - Sponsored ADR (ENGIY - 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 35.7%.

The consensus estimate for ENGIE - Sponsored ADR's current year EPS has increased 5.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Eletrobras belongs to the Utility - Electric Power industry, a group that includes 59 individual stocks and currently sits at #75 in the Zacks Industry Rank. On average, stocks in this group have gained 18.4% this year, meaning that EBR is performing better in terms of year-to-date returns. ENGIE - Sponsored ADR is also part of the same industry.

Eletrobras and ENGIE - Sponsored ADR could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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