Is Fortis (FTS) Stock Outpacing Its Utilities Peers This Year?

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Fortis (FTS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Fortis is a member of the Utilities sector. This group includes 107 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Fortis is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FTS' full-year earnings has moved 4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, FTS has gained about 11.3% so far this year. In comparison, Utilities companies have returned an average of 10.2%. This means that Fortis 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 RWE AG (RWEOY). The stock is up 16.7% year-to-date.

For RWE AG, the consensus EPS estimate for the current year has increased 4.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Fortis is a member of the Utility - Electric Power industry, which includes 58 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, this group has gained an average of 10.9% so far this year, meaning that FTS is performing better in terms of year-to-date returns. RWE AG is also part of the same industry.

Investors with an interest in Utilities stocks should continue to track Fortis and RWE AG. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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