For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Otter Tail (OTTR) 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.
Otter Tail is one of 104 companies in the Utilities group. The Utilities group currently sits at #9 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Otter Tail is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for OTTR's full-year earnings has moved 7.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, OTTR has moved about 4% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of -7.2% on a year-to-date basis. This means that Otter Tail is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, Swisscom AG (SCMWY), has outperformed the sector so far this year. The stock's year-to-date return is 1%.
The consensus estimate for Swisscom AG's current year EPS has increased 1.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Otter Tail belongs to the Utility - Electric Power industry, which includes 58 individual stocks and currently sits at #110 in the Zacks Industry Rank. On average, this group has lost an average of 10.4% so far this year, meaning that OTTR is performing better in terms of year-to-date returns.
Swisscom AG, however, belongs to the Diversified Communication Services industry. Currently, this 13-stock industry is ranked #174. The industry has moved +12.3% so far this year.
Investors interested in the Utilities sector may want to keep a close eye on Otter Tail and Swisscom AG as they attempt to continue their solid performance.
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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.
