Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Centrica PLC (CPYYY) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
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Centrica PLC is one of 106 individual stocks in the Utilities sector. Collectively, these companies sit at #2 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. Centrica PLC is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CPYYY's full-year earnings has moved 0.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CPYYY has moved about 32% on a year-to-date basis. At the same time, Utilities stocks have gained an average of 7.1%. This means that Centrica PLC is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, Sabesp (SBS), has outperformed the sector so far this year. The stock's year-to-date return is 43.4%.
Over the past three months, Sabesp's consensus EPS estimate for the current year has increased 7.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Centrica PLC is a member of the Utility - Gas Distribution industry, which includes 14 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, stocks in this group have lost 2.7% this year, meaning that CPYYY is performing better in terms of year-to-date returns.
Sabesp, however, belongs to the Utility - Water Supply industry. Currently, this 12-stock industry is ranked #34. The industry has moved +14.5% so far this year.
Centrica PLC and Sabesp 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).
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