Utilities are at an all-time high
Investors’ quest for safe-haven stocks resulted in a modest rally in US utilities this year. The Utilities Select Sector SPDR ETF (XLU) has risen more than 15% year-to-date. Currently, XLU is trading at an all-time high. In comparison, the SPDR S&P 500 (SPX-INDEX) (SPY) has risen 12% during the same period.
Many stocks from the S&P 500 Utilities Index are trading at their respective highs and offer flat to negative movement going forward. However, the four SPX Utilities listed below still seem to offer handsome upside potential for the future.
Let’s take a look at analysts’ views on these stocks. Among the nine analysts tracking AES, one analyst recommends it as a “strong buy,” while four analysts recommend it as a “buy.” Four analysts rate AES as a “hold” and none of them rate it as a “sell” as of November 16, 2017.
PG&E (PCG) is tracked by 14 Wall Street analysts. Seven of the analysts recommend it as a “buy,” while one rates it as a “strong buy.” Six analysts recommend PG&E as a “hold,” while none of the analysts rate it as a “sell.”
Wall Street analysts turned cautious to negative on SCANA (SCG) from positive earlier after a state attorney started a criminal investigation regarding the rate recovery of its nuclear power plant. Among the ten analysts covering SCANA, only one recommends it as a “strong buy,” six recommend it as a “hold,” one recommends it as a “sell,” and two recommend it as a “strong sell.”
Among the nine analysts covering NRG Energy (NRG), four recommend the stock as a “strong buy,” four recommend it as a “buy,” and one recommends it as a “hold.” None of the analysts recommend NRG Energy as a “sell.”
Among these four utility stocks, Wall Street analysts seem to be more optimistic about NRG Energy considering the “buy” ratings. Nearly 90% of the analysts tracking NRG Energy rated the stock as a “buy.”