Analysts’ target price
In this part, we’ll discuss stocks from the S&P 500 Utilities Index (XLU). Currently, the stocks are offering the highest potential upside for the next 12 months.
According to Wall Street analysts’ estimates, PPL (PPL) offers the highest potential upside of nearly 22% in a year. PPL has a mean target price of $33.8—compared to its current market price of $27.7.
PPL stock has been weak in the last few months. PPL stock corrected 24% in the past year—likely due to Brexit-related developments and volatile exchange rate movements.
PG&E (PCG) has a mean target price of $48.9—compared to its current market price of $40.7, which indicates a possible upside of more than 20% going forward.
PG&E lost more than $12 billion of its market capitalization after the California wildfires in 4Q17. To learn more, read California Wildfires Impacted PG&E’s 4Q17 Earnings.
NRG Energy (NRG), the top stock last year, offers a potential upside of more than 20% in a year. Wall Street analysts gave NRG Energy a mean target price of $33.5. Currently, NRG Energy is trading at $27.9.
AES (AES) has a mean target price of $12.7, which implies an estimated upside of 17% for the next 12 months. Currently, AES is trading at $10.9.
NiSource (NI) has a mean target price of $26.7—compared to its current market price of $23.2, which indicates an estimated upside of $15 going forward.
Utilities are thought to be safe due to their higher dividend yields and stable stock movements. To learn more, read These Utilities Have Raised Dividends for More than 40 Years.