For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Middlesex Water (MSEX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.

Middlesex Water is a member of our Utilities group, which includes 104 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Middlesex Water is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MSEX's full-year earnings has moved 1.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that MSEX has returned about 13.1% since the start of the calendar year. At the same time, Utilities stocks have gained an average of 2.8%. As we can see, Middlesex Water is performing better than its sector in the calendar year.

Another stock in the Utilities sector, NiSource (NI), has outperformed the sector so far this year. The stock's year-to-date return is 8.2%.

Over the past three months, NiSource's consensus EPS estimate for the current year has increased 2.7%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Middlesex Water belongs to the Utility - Water Supply industry, a group that includes 12 individual companies and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 9.3% so far this year, so MSEX is performing better in this area.

NiSource, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #88. The industry has moved +3.3% so far this year.

Middlesex Water and NiSource could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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