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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. Chesapeake Utilities (CPK) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Chesapeake Utilities is one of 104 individual stocks in the Utilities sector. Collectively, these companies sit at #5 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 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. Chesapeake Utilities is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CPK's full-year earnings has moved 0.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CPK has gained about 6% so far this year. In comparison, Utilities companies have returned an average of 4.3%. This means that Chesapeake Utilities is performing better than its sector in terms of year-to-date returns.
Centrica PLC (CPYYY) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.1%.
Over the past three months, Centrica PLC's consensus EPS estimate for the current year has increased 1.4%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Chesapeake Utilities belongs to the Utility - Gas Distribution industry, a group that includes 13 individual companies and currently sits at #24 in the Zacks Industry Rank. Stocks in this group have lost about 4.7% so far this year, so CPK is performing better this group in terms of year-to-date returns. Centrica PLC is also part of the same industry.
Chesapeake Utilities and Centrica PLC could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report