For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is American Electric Power Company (AEP - Free Report) one of those stocks right now? 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.
American Electric Power Company is a member of our Utilities group, which includes 125 different companies and currently sits at #9 in the Zacks Sector Rank. 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 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. AEP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AEP's full-year earnings has moved 1.61% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that AEP has returned about 5.67% since the start of the calendar year. Meanwhile, stocks in the Utilities group have gained about 2.66% on average. As we can see, American Electric Power Company is performing better than its sector in the calendar year.
Looking more specifically, AEP belongs to the Utility - Electric Power industry, which includes 66 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, this group has gained an average of 5.36% so far this year, meaning that AEP is performing better in terms of year-to-date returns.
AEP will likely be looking to continue its solid performance, so investors interested in Utilities stocks should continue to pay close attention to the company.