Looking at the Price Targets of Top-Yielding SPX Utilities
US utility stocks have outperformed broader markets year-to-date. Let’s look at where the utilities under our consideration could go in the near term.
According to Wall Street analyst estimates, competitive utility FirstEnergy (FE) stock has a mean price target of $34.47 compared with its current market price of $31.25. This implies an estimated upside potential of more than 10% going forward.
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AES Corporation (AES) has a mean price target of $13.25 and offers a gain potential of nearly 18%. It is currently trading at $11.27.
Public Service Enterprise Group (PEG) has a mean price target of $48.35 against its current price level of $45.60. This indicates a possible gain of ~6.0% going forward.
Given the upside potential and dividend yields of these utility stocks (XLU) (VPU), investors might consider them as investment options. However, it should be noted that many of the stocks we’ve discussed have significantly corrected in the last one-year period and can be considered comparatively risky relative to their peers.
To learn more about the price targets of top utility stocks in the sector, please read SO, NEE, and DUK: Looking at Top Utilities’ Price Targets.
You can read a comparative analysis of the three highest-yielding utilities based on their operational and financial characteristics in Are the Top-Yielding Utilities Really Worth the Risk?