Are Utilities Stocks Lagging NiSource (NI) This Year?

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is NiSource (NI) one of those stocks right now? 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.

NiSource is one of 107 individual stocks in the Utilities sector. Collectively, these companies sit at #5 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 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. NiSource is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NI's full-year earnings has moved 0.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, NI has returned 12.6% so far this year. In comparison, Utilities companies have returned an average of 10.2%. This means that NiSource is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is Sabesp (SBS). The stock has returned 17.2% year-to-date.

Over the past three months, Sabesp's consensus EPS estimate for the current year has increased 1.6%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, NiSource belongs to the Utility - Electric Power industry, a group that includes 58 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 11% so far this year, so NI is performing better in this area.

Sabesp, however, belongs to the Utility - Water Supply industry. Currently, this 11-stock industry is ranked #33. The industry has moved +7.1% so far this year.

NiSource and Sabesp could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

Source Zacks-com