Are Utilities Stocks Lagging CenterPoint Energy (CNP) This Year?

CenterPoint Energy (CNP) is outperforming the utilities sector, with a year-to-date gain of 12.1% compared to the sector's 6.4% average; this is supported by a Zacks Rank of #2 (Buy) and a 0.2% increase in the consensus estimate for full-year earnings over the past three months. Energias de Portugal (EDPFY) is another utilities stock showing strong performance, with a 29.8% year-to-date return and a 9.1% increase in its current year EPS estimate, holding a Zacks Rank #1 (Strong Buy).

Analysis

CenterPoint Energy (CNP) is demonstrating significant outperformance within the Utilities sector, posting a year-to-date gain of approximately 12.1%, nearly double the sector's average return of 6.4%. This performance is underpinned by a Zacks Rank of #2 (Buy) and a modest 0.2% upward revision in its full-year consensus earnings estimate over the past three months, suggesting improving analyst sentiment and a strengthening earnings outlook. The Utilities sector itself holds a favorable Zacks Sector Rank of #2 out of 16, indicating a generally positive environment for companies within this group. CNP also outperforms its specific Utility - Electric Power industry, which has seen an average year-to-date gain of 6.3%. Another notable performer in the same sector and industry is Energias de Portugal (EDPFY), which has recorded an even more substantial year-to-date return of 29.8%. EDPFY's strong performance is supported by a significant 9.1% increase in its current year consensus EPS estimate over the past three months and a Zacks Rank of #1 (Strong Buy). Both companies are highlighted as potentially maintaining their solid performance trajectories.

Key Decisions for Investors

• Investors might consider CenterPoint Energy (CNP) for its outperformance relative to the Utilities sector and its industry, supported by a 'Buy' rating and positive earnings estimate revisions, though the magnitude of revisions is modest.
• Energias de Portugal (EDPFY) presents a compelling case within the Utilities sector, given its superior year-to-date returns, more significant positive earnings estimate revisions, and a 'Strong Buy' rating, meriting close attention for potential investment or increased allocation.
• Monitor ongoing earnings estimate revisions and relative strength for both CNP and EDPFY, as continued positive momentum in these metrics could further validate their outperformance within the favorably ranked Utilities sector.