Here is how New Jersey Resources (NJR) and Otter Tail (OTTR) have performed compared to their sector so far this year.
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has New Jersey Resources (NJR) been one of those stocks this year? 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.
New Jersey Resources is a member of the Utilities sector. This group includes 110 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. New Jersey Resources is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for NJR's full-year earnings has moved 5.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, NJR has moved about 21.4% on a year-to-date basis. Meanwhile, stocks in the Utilities group have gained about 10.7% on average. This means that New Jersey Resources is performing better than its sector in terms of year-to-date returns.
Another Utilities stock, which has outperformed the sector so far this year, is Otter Tail (OTTR). The stock has returned 13.7% year-to-date.
Over the past three months, Otter Tail's consensus EPS estimate for the current year has increased 4.4%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, New Jersey Resources is a member of the Utility - Gas Distribution industry, which includes 13 individual companies and currently sits at #61 in the Zacks Industry Rank. Stocks in this group have gained about 9.9% so far this year, so NJR is performing better this group in terms of year-to-date returns.
Otter Tail, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #74. The industry has moved +11.8% so far this year.
New Jersey Resources and Otter Tail could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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