Analyst price targets
In this part of our series, we’ll take a look at S&P 500 Utilities (XLU) stocks that offer attractive upside potential.
According to Wall Street analyst consensus, PPL Corporation (PPL) stock offers a potential gain of approximately 20% for the next 12 months—the highest among the S&P 500 Utilities Index. It has a mean price target of $32.7 against its current market price of $27.1.
AES Corporation (AES), one of the smallest components of the S&P 500 Utilities, has a mean price target of $12.7 against its current market price of $10.7. This difference indicates a potential upside of 19% for the next year.
NRG Energy (NRG) has an estimated upside of more than 17%, given its mean price target of $34.9. It’s currently trading at $29.8. NRG stock was the biggest gainer among peers in the last year. Analysts expect a robust upside in the stock, which has rallied more than 64% in the last year.
NiSource (NI) saw an implied gain of more than 14% for the next 12 months, given its mean price target of $26.4. It’s currently trading at $23.1.
California utilities have been very weak over the last few months after wildfires in 4Q17. See How California Utilities Are Performing amid Mounting Challenges.
Also check out S&P 500 Utilities with Above-Average Dividend Yields.