uploads///waters _

NEE, DUK, SO, and D: How Top Utility Stocks Fared in November

By

Dec. 5 2018, Updated 12:27 p.m. ET

Duke Energy stock outperformed

Among the top utilities, Duke Energy (DUK), the second-biggest utility by market cap, stock beat its peers in November. The stock rose more than 8%, while NextEra Energy (NEE) stock rose 6%. Southern Company (SO) and Dominion Energy (D) gained 5% and 2%, respectively, in November. Utilities rose more than 2%. The SPDR S&P 500 ETF (SPY), an indicator of broader markets, rose marginally last month.

Article continues below advertisement

What drove utility stocks?

Investors turned to relatively safer utility stocks during market turmoil. The defensive sectors, like utilities, tend to outperform broader equities amid market uncertainty due to their stable stock movements and higher dividend paying abilities.

All four of the top utilities by market cap reported better-than-expected earnings in the third quarter, which supported their market performance. Last week, the Fed’s minutes suggested that there’s a strong possibility of another rate hike in 2018. Even though utilities rallied after the last rate hike in September, we’ll have to see how these defensives react to the expected rate hike.

So far, utilities (XLU) have outperformed broader markets in terms of total return in 2018. Broader utilities, including dividends, have returned ~10% in 2018, while the S&P 500 has returned 2.6% during the same period.

Next, we’ll analyze these utility stocks in terms of their current valuation and chart indicators in this series. We’ll also discuss the target prices and analysts’ views.

Advertisement

More From Market Realist

  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • Beyond Meat Burger 3.0
    Company & Industry Overviews
    How Is Beyond Burger 3.0 Different and Will It Bring BYND Stock Up?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.