X
<

Utility Stocks: Must-Know Insights for Investors

PART:
1 2 3
Part 3
Utility Stocks: Must-Know Insights for Investors PART 3 OF 3

Analysts Are the Most Bearish on These Utility Stocks

NRG Energy

On March 31, NRG Energy (NRG) had a short-interest-to-equity float ratio of 4.5%, the highest among the utility stocks that make up the Utilities Select Sector SPDR ETF (XLU).

Analysts Are the Most Bearish on These Utility Stocks

Interested in NRG? Don't miss the next report.

Receive e-mail alerts for new research on NRG

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

In the past three months, NRG Energy has risen 52.5%, the most among utility stocks with high short interests. Its short-interest-to-equity float ratio has fallen 7.6% during this period. Its net-debt-to-EBITDA ratio is 6.6x. In the last four quarters, NRG’s revenue has fallen 10.8% while its adjusted operating income has fallen 81.5%. NRG Energy’s operating profit margin is 9.8%.

As we saw in the first two parts of this series, NRG Energy had the highest implied volatility among the utility stocks that make up XLU. Its high short interest could explain why it has high implied volatility. High short interest in a stock shows the market’s expectation of a large fall, which can cause a stock’s implied volatility to rise.

Scana

Scana’s (SCG) short-interest-to-equity float ratio is 4.0%. In the last three months, Scana stock has fallen 10.8% while its short interest-to-equity float ratio has risen 12.2%. Its net-debt-to-EBITDA ratio is 4.7x.

We discussed SCG’s earnings trend in part two of this series. It is also one of the high implied volatility stocks discussed in Part 1 of this series.

Consolidated Edison

Consolidated Edison’s (ED) short-interest-to-equity float ratio is 3.5%. Its net-debt-to-EBITDA ratio is 4.1x. Its stock has risen 5.4% in the last three months, while its short-interest-to-equity float ratio has fallen 3.7%.

In the last four quarters, Consolidated Edison’s revenue has risen 8.5%, and its operating profit has risen 19.8%. Its operating profit margin is 20.5%.

Dominion Resources

Dominion Resources’ (D) short-interest-to-equity float ratio is 3.3%. Its net-debt-to-EBITDA ratio is 6.3x. In the last three months, the stock has risen 1.3%, while its short-interest-to-equity float ratio has risen 9.1%. In the last four quarters, Dominion Resources’ revenue has risen 20.3%, while its operating profit has risen 28.4%. Its operating profit margin is 31.5%.

Ameren Corporation (AEE)

Ameren Corporation’s (AEE) short-interest-to-equity float ratio is 3.1%. Its net-debt-to-EBITDA ratio is 3.5x. In the last three months, the stock has risen 4.1% while its short-interest-to-equity float ratio has risen 2%. In the last four quarters, Ameren Corporation’s revenue has risen 3.7%, and its operating profit has risen 3.6%. Its operating profit margin is 22.7%.

Correction: This article originally discussed additional PPL. Due to an error in the source data this research is based on, we have updated the post by removing that discussion and adding the discussion on AEE.

X

Please select a profession that best describes you: