The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Middlesex Water (MSEX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Middlesex Water is a member of our Utilities group, which includes 104 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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 three months, the Zacks Consensus Estimate for MSEX's full-year earnings has moved 3.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, MSEX has returned 13% so far this year. Meanwhile, stocks in the Utilities group have gained about 5% on average. 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 7.6%.

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

Looking more specifically, Middlesex Water belongs to the Utility - Water Supply industry, which includes 12 individual stocks and currently sits at #213 in the Zacks Industry Rank. Stocks in this group have gained about 12.5% so far this year, so MSEX is performing better this group in terms of year-to-date returns.

On the other hand, NiSource belongs to the Utility - Electric Power industry. This 60-stock industry is currently ranked #66. The industry has moved +6% year to date.

Investors interested in the Utilities sector may want to keep a close eye on Middlesex Water and NiSource as they attempt to continue their solid performance.

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

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