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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is CMS Energy (CMS) 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.
CMS Energy is a member of our Utilities group, which includes 104 different companies and currently sits at #4 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CMS Energy is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CMS' full-year earnings has moved 0.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CMS has returned 9.2% so far this year. Meanwhile, the Utilities sector has returned an average of 4.1% on a year-to-date basis. As we can see, CMS Energy is performing better than its sector in the calendar year.
Another Utilities stock, which has outperformed the sector so far this year, is Iberdrola S.A. (IBDRY). The stock has returned 10.4% year-to-date.
The consensus estimate for Iberdrola S.A.'s current year EPS has increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CMS Energy belongs to the Utility - Electric Power industry, which includes 60 individual stocks and currently sits at #53 in the Zacks Industry Rank. This group has gained an average of 5.2% so far this year, so CMS is performing better in this area. Iberdrola S.A. is also part of the same industry.
CMS Energy and Iberdrola S.A. could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).