What Led the Rally among the Top Utility Gainers This Year?
In this part of our series, we’ll take look at the comparative stock price movement of the top gainers among S&P 500 utilities (XLU). Despite its consistently weak performance over the past few years, NRG Energy (NRG) trampled broader utilities by a huge margin so far in 2017.
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Investors’ expectations of better growth prospects appear to have grown after activist shareholders joined the NRG board, which pushed the stock higher. (You can read more on this in Market Realist’s series Does NRG Energy Have Really Strong Growth Prospects?)
By comparison, NextEra Energy (NEE) has shown a decent and sustained rally over the past five years. Its rally was primarily driven by strong fundamentals, resulting in strong earnings growth and dividend growth that surpassed those of peers.
Now that we’ve discussed what led the recent rally among these stocks, let’s move ahead and assess their total returns.