Investors focused on the Utilities space have likely heard of TerraForm Power (TERP),floor maintainer with a diamabrush 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.

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

TerraForm Power, Inc. (TERP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

View comments