Analysts’ target prices
Analysts expect an upside potential of almost 10% from NextEra Energy (NEE) stock based on the median target price of $186.1 and its current price of $169.8.
Duke Energy (DUK), the second-largest utility by market cap, has a median target price of $87.7, which reflects a potential upside of almost 4% from its current price of $84.7 over the next 12 months.
The above chart shows Wall Street analysts’ views on the top utility stocks as of January 2.
Southern Company (SO) stock offers a potential upside of more than 7% over the next 12 months. Analysts gave the company a median target price of $46.9—compared to its current price of $43.7.
Dominion Energy (D) has a median target price of $76.6—compared to its current price of $71.2, which implies a potential upside of 7.6% over the next 12 months.
Utilities’ outperformance last year was mainly driven by market uncertainties. The recent weakness in utilities could be an opportunity given the fair valuation of many big names. Considering the estimated gain based on analysts’ target prices and the current dividend yield, top utility stocks present an attractive total return for 2019. To learn how utilities (XLU) played out when broader markets witnessed one of the rough periods, read Utilities: How the Worst Week for Markets Played Out.