Investors focused on the Utilities space have likely heard of NRG Energy (NYSE:NRG), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of NRG and the rest of the Utilities group's stocks.
NRG Energy is one of 120 individual stocks in the Utilities sector. Collectively, these companies sit at #4 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. NRG is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NRG's full-year earnings has moved 8.20% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, NRG has returned 6.69% so far this year. In comparison, Utilities companies have returned an average of 6.12%. This shows that NRG Energy is outperforming its peers so far this year.
To break things down more, NRG belongs to the Utility - Electric Power industry, a group that includes 64 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, this group has gained an average of 6.69% so far this year, meaning that NRG is performing on par in terms of year-to-date returns.
Investors in the Utilities sector will want to keep a close eye on NRG as it attempts to continue its solid performance.
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Zacks Investment Research