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NRG, SRE, AWK, and EIX: Utility Stocks with Strong Upside Potential

Vineet Kulkarni - Author

Nov. 20 2020, Updated 1:49 p.m. ET

Analysts’ target prices

In this part, we’ll discuss the utilities that offer a strong upside potential for 2019. Wall Street analysts have given NRG Energy (NRG) a median target price of $44.5, which implies an ~14% upside potential compared to its current price of $39.0. NRG Energy is one of analysts’ favorite utility stocks. Read Do You Own Analysts’ Favorite Utility Stocks? to learn more.

Edison International (EIX) stock has an estimated upside of 12.6% based on analysts’ median target price of $65.8. Currently, Edison International is trading at $58.4. Goldman Sachs raised Edison International’s rating from “neutral” to “buy” on January 4.

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Strong potential upside

PG&E (PCG) stock offers an estimated upside of almost 60% based on analysts’ estimates. However, we haven’t included PG&E due to wildfire-related uncertainties.

American Water Works (AWK) stock offers an estimated upside of more than 10% for the next 12 months—compared to analysts’ target price of $99.0. Currently, American Water Works is trading at $89.8.

Analysts’ median target price of $125.4 for Sempra Energy (SRE) implies an upside potential of 13.5% on its current market price of $110.5. Sempra Energy is the biggest utility by market cap in California. Sempra Energy has operations in two of the most populous states—California and Texas—which helps its earnings growth. Sempra Energy’s stable yield and superior dividend growth make it an attractive bet going forward.

To learn about the top utility stocks’ (XLU) target prices and analysts’ recommendations, read NEE, DUK, SO, and D: Analysts’ Views and Target Prices.


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