Investors focused on the Utilities space have likely heard of TerraForm Power (TERP - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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.
TerraForm Power is one of 120 companies in the Utilities group. The Utilities group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. TERP is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for TERP's full-year earnings has moved 25.81% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that TERP has returned about 48.66% since the start of the calendar year. Meanwhile, stocks in the Utilities group have gained about 4.70% on average. This shows that TerraForm Power is outperforming its peers so far this year.
Breaking things down more, TERP is a member of the Utility - Electric Power industry, which includes 65 individual companies and currently sits at #98 in the Zacks Industry Rank. Stocks in this group have gained about 21.18% so far this year, so TERP is performing better this group in terms of year-to-date returns.
Investors in the Utilities sector will want to keep a close eye on TERP as it attempts to continue its solid performance.