Is Algonquin Power & Utilities (AQN) Outperforming Other Utilities Stocks This Year?

Algonquin Power & Utilities (AQN) is significantly outperforming the Utilities sector year-to-date, with a 33% return compared to the sector's 6.9% average, driven by a 1.1% increase in its full-year earnings consensus estimate over the past quarter and a Zacks Rank of #2 (Buy). MYR Group (MYRG) is another Utilities stock outperforming the sector with a 7.7% return YTD and a 17.2% increase in current year EPS estimates over the last three months, also holding a Zacks Rank #2 (Buy).

Analysis

Algonquin Power & Utilities (AQN) is demonstrating significant outperformance within the Utilities sector, which itself holds a favorable Zacks Sector Rank of #2 out of 16. AQN has delivered a substantial 33% year-to-date return, starkly contrasting with the Utilities sector's average gain of 6.9% and its direct Utility - Electric Power industry's average gain of 7% (Zacks Industry Rank #68). This performance is underpinned by a 1.1% increase in the Zacks Consensus Estimate for AQN's full-year earnings over the past quarter, contributing to its Zacks Rank of #2 (Buy) and indicating improving analyst sentiment alongside a stronger earnings outlook. Similarly, MYR Group (MYRG), another notable performer highlighted, has achieved a 7.7% year-to-date return. MYRG's outlook appears particularly robust, with its consensus EPS estimate for the current year surging 17.2% over the past three months, also securing a Zacks Rank #2 (Buy). MYRG belongs to the highly-ranked Electric Construction industry (Zacks Industry Rank #3), which has appreciated by 7.7% year-to-date. The positive earnings estimate revisions and strong relative price performance for both AQN and MYRG underscore their current investment appeal based on the provided metrics.

Key Decisions for Investors

• Investors may consider Algonquin Power & Utilities (AQN) and MYR Group (MYRG) as potentially attractive investments given their significant year-to-date outperformance compared to the broader Utilities sector and positive revisions in earnings estimates.
• The Zacks Rank #2 (Buy) assigned to both AQN and MYRG suggests a favorable short-term outlook based on earnings momentum, which could warrant further due diligence for portfolio inclusion or augmentation.
• Monitoring upcoming earnings reports and any further shifts in analyst consensus estimates for both AQN and MYRG will be crucial to affirm the sustainability of their current growth trajectory and positive sentiment.