Utility stocks have been rising for the past few months. They’re offering flattish to negative movement based on analysts’ target prices for the next year. Recently, some brokerages increased utilities’ target prices. Renewed geopolitical tensions and the Fed’s intentions to pause interest rate hikes for the rest of the year could be some of the important drivers behind utilities’ improved target prices.
American Electric Power (AEP) offers a potential downside of more than 2% for the next 12 months. Barclays raised AEP’s target price from $84.0 to $91.0 on March 20.
Exelon (EXC), one of the top gainers among utilities last year, has a median target price of $49.9 for the next 12 months. UBS raised Exelon’s target price from $53.0 to $56.0 last week.
FirstEnergy (FE) offers a potential upside of 3.4% for the next 12 months. The stock has rallied almost 25% over the past 12 months. UBS raised its target price from $45.0 to $47.0 last week. Barclays upgraded FirstEnergy from equal weight to overweight and increased its target price from $40.0 to $46.0.
UBS raised Sempra Energy’s (SRE) target price from $129.0 to $141.0 on March 21. J.P. Morgan also increased the target price from $121.0 to $130.0 last week.
Xcel Energy (XEL) stock offers a potential downside of more than 4% for the next year. UBS raised the target price from $55.0 to $59.0 last week.
To learn about top utilities’ target prices and analysts’ views, read Brokerages Raised Top Utilities’ Price Targets.
DCP Midstream (DCP), TC PipeLines (TCP), and Summit Midstream Partners (SMLP) were among the biggest MLP gainers in the last week.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.