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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. RWE AG (RWEOY) 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.
RWE AG is one of 106 companies in the Utilities group. The Utilities group currently sits at #1 within 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 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. RWE AG is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for RWEOY's full-year earnings has moved 8.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, RWEOY has gained about 32.1% so far this year. At the same time, Utilities stocks have gained an average of 6.5%. This means that RWE AG is performing better than its sector in terms of year-to-date returns.
One other Utilities stock that has outperformed the sector so far this year is SJW (SJW). The stock is up 15.3% year-to-date.
In SJW's case, the consensus EPS estimate for the current year increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, RWE AG belongs to the Utility - Electric Power industry, a group that includes 60 individual companies and currently sits at #34 in the Zacks Industry Rank. This group has gained an average of 6.9% so far this year, so RWEOY is performing better in this area.
In contrast, SJW falls under the Utility - Water Supply industry. Currently, this industry has 12 stocks and is ranked #78. Since the beginning of the year, the industry has moved +19.5%.
RWE AG and SJW could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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