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Investors focused on the Utilities space have likely heard of TerraForm Power (TERP), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.
TerraForm Power is a member of the Utilities sector. This group includes 119 individual stocks and currently holds a Zacks Sector Rank of #5. 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. TERP is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for TERP's full-year earnings has moved 11.77% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, TERP has moved about 13.13% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of -6.95% on a year-to-date basis. This means that TerraForm Power is outperforming the sector as a whole this year.
Breaking things down more, TERP is a member of the Utility - Electric Power industry, which includes 65 individual companies and currently sits at #100 in the Zacks Industry Rank. On average, stocks in this group have lost 3.52% this year, meaning that TERP is performing better in terms of year-to-date returns.
Going forward, investors interested in Utilities stocks should continue to pay close attention to TERP as it looks to continue its solid performance.
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