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Is Atmos Energy (ATO) Stock Outpacing Its Utilities Peers This Year?

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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Atmos Energy (ATO - 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.

Atmos Energy is a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #3. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ATO has moved about 27.1% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of 19.1% on a year-to-date basis. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.

Energias de Portugal (EDPFY - 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 59.8%.

Over the past three months, Energias de Portugal's consensus EPS estimate for the current year has increased 9.1%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Atmos Energy is a member of the Utility - Gas Distribution industry, which includes 14 individual companies and currently sits at #84 in the Zacks Industry Rank. On average, this group has gained an average of 13.3% so far this year, meaning that ATO is performing better in terms of year-to-date returns.

In contrast, Energias de Portugal falls under the Utility - Electric Power industry. Currently, this industry has 59 stocks and is ranked #58. Since the beginning of the year, the industry has moved +19.9%.

Atmos Energy and Energias de Portugal could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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