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Is Atmos Energy (ATO) Outperforming Other Utilities Stocks This Year?

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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has Atmos Energy (ATO - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.

Atmos Energy is one of 109 individual stocks in the Utilities sector. Collectively, these companies sit at #3 in 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 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. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATO's full-year earnings has moved 2.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ATO has gained about 19.7% so far this year. At the same time, Utilities stocks have gained an average of 16.4%. This means that Atmos Energy is performing better than its sector in terms of year-to-date returns.

Another stock in the Utilities sector, Lumen (LUMN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 54.2%.

In Lumen's case, the consensus EPS estimate for the current year increased 9.5% over the past three months. 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 #99 in the Zacks Industry Rank. This group has gained an average of 9.1% so far this year, so ATO is performing better in this area.

In contrast, Lumen falls under the Diversified Communication Services industry. Currently, this industry has 19 stocks and is ranked #99. Since the beginning of the year, the industry has moved +12.2%.

Investors with an interest in Utilities stocks should continue to track Atmos Energy and Lumen. These stocks will be looking to continue their solid performance.


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