The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Pinnacle West (PNW) 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? 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.
Pinnacle West is one of 104 companies in the Utilities group. The Utilities group currently sits at #8 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 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. Pinnacle West is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PNW's full-year earnings has moved 7.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, PNW has gained about 18.9% so far this year. At the same time, Utilities stocks have gained an average of 11.2%. This means that Pinnacle West is outperforming the sector as a whole this year.
Another Utilities stock, which has outperformed the sector so far this year, is Southern Co. (SO). The stock has returned 18.1% year-to-date.
For Southern Co. the consensus EPS estimate for the current year has increased 0.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Pinnacle West is a member of the Utility - Electric Power industry, which includes 59 individual companies and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have gained about 15% so far this year, so PNW is performing better this group in terms of year-to-date returns. Southern Co. is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Pinnacle West and Southern Co. These stocks will be looking to continue their solid performance.
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Southern Company (The) (SO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
