24 Sep

How Volatility Has Trended in Utilities Recently

WRITTEN BY Vineet Kulkarni

Implied volatility

On September 21, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 13%, marginally higher than its 15-day average. A stock’s implied volatility represents investors’ unease. Rising volatility is generally related to a fall in a stock’s price.

The implied volatilities of Southern Company (SO) and Dominion Energy (D) were ~14% each recently. Top utility stocks Duke Energy (DUK) and NextEra Energy (NEE) also exhibited volatilities of close to those levels. SPY is making all-time highs, and its implied volatility levels are touching levels of below 8%, some of the lowest this year.

How Volatility Has Trended in Utilities Recently

Among utilities, the highest implied volatility recently has been PG&E (PCG) stock at ~33%. The volatility of NRG Energy (NRG), one of the smallest constituents of XLU, is close to 28%.

NextEra Energy, Duke Energy, Southern Company, and Dominion Energy are the four top utilities in the country by market cap. You can read how they’re positioned going forward in Market Realist’s How the Big Utilities Are Placed for the Future.

Let’s take a look at utilities’ analyst recommendations and price targets in the next article.

Latest articles

On Tuesday, Tesla (TSLA) cut the prices of its vehicles to standardize its global car line-up, according to Reuters.

Yesterday, PayPal (PYPL) announced that it would expand Xoom, which is its international money transfer service, to 32 markets in Europe.

Visa stock has risen about 37% and has outperformed the S&P 500 Index so far in 2019.

16 Jul

What to Expect from Skechers’s Q2 Results

WRITTEN BY Sharon Bailey

Skechers (SKX) is set to declare its results for the second quarter after the markets close on July 18. Here's what you should know.

On Tuesday, Canadian Pacific Railway (CP) reported strong second-quarter earnings. The company's top and bottom lines touched a record mark.

16 Jul

What to Expect from Crown Castle's Q2 Results

WRITTEN BY Sushree Mohanty

Crown Castle International (CCI) is scheduled to announce its second-quarter earnings results on Wednesday after the market closes.