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Is Algonquin Power & Utilities (AQN) 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. Has Algonquin Power & Utilities (AQN - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Algonquin Power & Utilities is one of 109 individual stocks in the Utilities sector. Collectively, these companies sit at #4 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Algonquin Power & Utilities is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AQN's full-year earnings has moved 0.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that AQN has returned about 25.4% since the start of the calendar year. Meanwhile, stocks in the Utilities group have gained about 17.9% on average. As we can see, Algonquin Power & Utilities is performing better than its sector in the calendar year.

Entergy (ETR - 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 26.7%.

For Entergy, the consensus EPS estimate for the current year has increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Algonquin Power & Utilities is a member of the Utility - Electric Power industry, which includes 59 individual companies and currently sits at #57 in the Zacks Industry Rank. Stocks in this group have gained about 19% so far this year, so AQN is performing better this group in terms of year-to-date returns. Entergy is also part of the same industry.

Algonquin Power & Utilities and Entergy could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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