Why Exelon’s recent quarterly earnings were positive
Exelon Corporation (EXC) reported a net income of $440 million in its 2Q14 earnings. The quarterly net income was $14 million lower year-over-year (or YoY).
Strong Dollar Will Likely Drag AES Corporation’s 4Q15 Numbers
In 4Q15, AES Corporation is expected to report earnings of $0.33 per share in 4Q15—compared to earnings of $0.41 per share in 4Q14.
Will AES’s Unstable Earnings Even out Soon?
AES’s management forecasts an 18% fall in EPS (earnings per share) this year due to currency fluctuations and weaker power prices globally.
NRG Energy’s Valuation Compared to Its Peers
Currently, NRG Energy (NRG) stock is trading at a forward PE ratio of 8.5x based on its estimated EPS in 2019.
Comparing NRG Energy’s Valuation to Its Peers
Currently, NRG Energy (NRG) is trading at an EV-to-EBITDA valuation of ~12x—compared to its five-year historical average valuation of 11x.
NRG Energy Stock: Analysts’ Recommendations
Among the ten analysts tracking NRG Energy, four recommended a “strong buy,” five recommended a “buy,” and one recommended a “hold.”
What Do Brokers Think of AES before 2Q16 Earnings?
Wall Street analysts have given AES (AES) an estimated median price target of $13. It implies a possible upside of 3% in the next year.
Why Coal and Utilities Indicators Matter To Long-Term Investors
Thermal coal is mostly used for electricity generation. So the state of the utilities sector is by far the biggest driver of the coal industry.
Why High Yield Bond Market Issuance Gained Traction Last Week
High yield bond issuance activity gained traction last week on improved Market sentiment. The total US dollar-denominated issuance of high yield debt is $60.8 billion in 2016 YTD.
How Wall Street Views NRG Energy Stock
Among the total eight analysts covering NRG Energy (NRG), three recommend the stock as a “strong buy,” four recommend it as a “buy,” and one recommends it as a “hold.”
Analyzing the 10 Top-Yielding SPX Utility Stocks
The Utilities Select Sector SPDR ETF (XLU), which represents the S&P 500 Utilities Index, currently yields 3.5%. In this series, we’ll discuss the top ten highest-yielding utility stocks from the S&P 500 Utilities Index.
AES: A Look at Its Geographical Sales Mix
In 2015, nearly 75% of AES’s earnings came from outside the United States. This brought its earnings brutally under pressure due to currency fluctuations.
Which Utility Stocks Lead in Implied Volatility?
On November 8, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
Analyzing AES Corporation’s Forward Dividend Yield
AES Corporation (AES) is currently trading at a forward dividend yield of 3.6%.
AES Stock Continues to Fall: What Investors Can Expect
While broader utilities are climbing towards a new high, AES (AES) stock continues to fall. It hit a new 52-week low of $10.31 on November 7, 2017.
NRG Energy’s Target Price after Its 4Q17 Earnings
NRG Energy (NRG) stock has a mean target price of $33.25, which indicates an upside potential of more than 23% for the next 12 months.
Why Exelon’s generating assets are regionally diverse
Exelon Corporation’s (EXC) power generation assets are spread across 18 states in the U.S. and some parts of Canada. Regional diversity is very important.
Not All Utility Stocks Are Overpriced
Utility stocks seem overvalued. Utilities have reached record levels. They have been trading at inflated valuations for months.
Why Analysts Are Expecting AES Earnings to Fall in 2Q16
Analysts expect AES (AES) to report earnings of $0.16 per share in 2Q16. In the same quarter last year, it reported earnings of $0.25 per share.
What Are Analysts’ Price Targets for AES before Its 3Q Results?
According to Wall Street analysts, AES has an estimated upside of 6.5% for the next year with a price target of $12.83. Currently, it’s trading at $12.
Analyzing AES’s Latest Valuation, Analyst Views, and More
The most globally diversified utility, AES Corporation (AES), has a potential upside of more than 18% over the next 12 months.
How Do Analysts View SCANA Stock in April 2018?
According to Wall Street analysts’ estimates, SCANA (SCG) stock is expected to rise approximately 9% over the next 12 months.
Why Coal and Power Indicators Matter for Long-Term Investing
Why are we combining thermal coal and power indicators? Thermal coal is mostly used for electricity generation.
What Makes AES’s Dividend Profile Attractive?
AES Corporation (AES) declared a per share dividend of $0.13 last month.
Must-know: The EPA helped a coal producing region
The Illinois Basin produced ~120 million tons of coal during the 12 months ending September 13, 2014. This was ~65% of the interior region’s total production of 185 million tons during the same period. With estimates reserves of ~50 billion tons, the basin ranks second only to the gigantic PRB.
Utilities Come under Pressure as September Fed Meeting Nears
All 40 utilities we track saw a fall in their stock prices during the week ending September 4. The broad-based SPDR S&P 500 ETF (SPY) lost a whopping 3.5% during the week.
These SPX Utilities Could Gain You More than 10% from Here
US utilities have risen nearly 12% year-to-date and surpassed broader markets. Very few utility stocks offer handsome potential upside going forward.
Why the issuance for high-yield bonds was dropped
After rising sharply the previous week, the issuance for the high-yield bonds dropped to $8.6 billion for the week ending on May 16 compared to $10 billion for the week ending on May 9.
Analyzing Utility Stocks’ Implied Volatilities
On January 11, 2017, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
The Top Utility Stocks with Strong Dividend Growth
Utility stocks’ dividend growth plays a vital role in driving investors’ total returns over the long term, making it important as a dividend yield.
How Utility Stocks Could Fare in 2020 with No Rate Cuts
Utility stocks have been some of the strongest equities this year. The stocks are up approximately 20% this year, in line with the Dow Jones.
Must-know: Risks to AES Corporation’s business
Given the nature of its business, AES Corporation (AES) faces risks relating to currency fluctuations, fuel prices, interest rates, and a scattered business model.
US power companies: Comparing valuation multiples
Forward multiples are a useful metric for gauging relative valuation. A higher multiple usually indicates a richer valuation for a company.
Why electricity demand is linked to GDP
Electricity is the backbone of a nation’s progress. All of the industries need electricity to operate—directly or indirectly. When a business flourishes, the electricity consumption increases.
Will AES Stock Continue Its Surging Spree?
AES Corporation (AES) stock hit a new 52-week high of $18.62 yesterday. Also, it gained in 8 of the last 9 trading sessions.
S&P 500 Utilities Stocks with Maximum Upside Potential
PG&E (PCG) stock offers a handsome upside potential of 71% going forward. Wall Street analysts have given it a median target price of $40.2.
Top Utility Stocks’ Wall Street Ratings and Price Targets
Many top utility stocks are offering flattish potential upside due to the recent rally, based on analysts’ estimates.
How Utilities Fared amid Broader Market Swings Last Week
So far this year, utility stocks have gained ~11%, while the S&P 500 has gained more than 15%.
How Utility Stocks Are Placed for the Future
Last week, utility stocks continued to underperform broader markets for the third consecutive week. XLU rose 0.2% for the week ending April 12.
NRG Energy Offers a Strong Potential Upside
According to Wall Street analysts, NRG Energy (NRG) stock has a median target price of $44.5—compared to its current market price of $36.2.
Is Exelon Trading at a Discount Compared to Its Peers?
Exelon’s (EXC) EV-to-EBITDA (enterprise value-to-EBITDA) multiple is 7.57x.
A Look at the Earnings and Revenue Drivers for AES
What drove the EPS growth for AES? AES Corporation’s (AES) cost of sales dropped 1.0% in 2016 before rising 4.0% in 9M17. As a result, its gross profit fell 15.0% in 2016 before expanding 11.0% in 9M17. AES Corporation’s general and administrative expenses decreased 1.0% in 2016 and rose 15.0% in 9M17. This led to […]
Key Factors that Could Drive the Dividend Growth of AES
AES Corporation’s (AES) revenues shed 4.0% in 2016 before growing 5.0% in 9M17.
Mylan: How Its Performance Contributed to Its Valuation
In this final series of our three-part series, we’ll be looking at the last seven stocks among the top 18 cheap stocks in the S&P 500 for 2018.
AES Stock Offers Decent Upside Potential
AES (AES) has upside potential of 19% from its current price levels of $10.9. Wall Street analysts have given it a price target of $12.9.
Utility Stocks with High Implied Volatilities
On December 21, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
Identifying Utility Stocks with High Volatilities
On December 15, 2016, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF.
Analyzing Utility Stocks with High Volatility
On December 6, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
Utility Stocks That Lead in Implied Volatility
On October 26, 2016, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
A Look at AES’s Dividend Yield
AES’s (AES) dividend yield has improved significantly in the last couple of years. The 10% fall in dividends in 2016 is among one of the highest in the industry.
What Do AES Corporation’s Institutional Holdings Suggest?
Institutional investors have increased their positions in AES Corporation (AES) in 2Q16, as compared to where these stood as of March 31, 2016.
How Do AES’s Forward Yield and Dividend Growth Place It among Peers?
AES Corporation is currently trading at a forward dividend yield of 4%, and analysts expect the company’s dividends to grow by 10% in the next two years.
AES Has Paid Handsome Dividends, But Can It Continue?
AES Corporation’s management forecasts that its cash flow will grow significantly in 2016—enough to support its projected annual dividend increase of 10%.
Which Utility Stocks Have the Highest Implied Volatility?
As of June 22, 2016, NRG Energy (NRG) has the highest implied volatility figure of all utility companies at 48.5.
NRG Energy’s Debt: Is It Too Late for Dividend and Cost Cuts?
NRG management’s focus on debt reduction and cost-cutting initiatives may improve the company’s balance sheet. But its cash flow is likely to remain stressed.
How PPL Plans to Power Superior Earnings Growth
PPL Corporation (PPL) is targeting 6.3% annual earnings growth in 2016, which is on the high side of the industry average.
Why Is Sempra Targeting Elaborate Earnings Growth?
Sempra provided flat to negative earnings guidance for 2016 based on its LNG terminal development and the weak outlook from its international segment.
PLVVX Has Fallen Considerably YTD, Underperforming Its Benchmark
Weak economic positions of developed countries have affected the growth of emerging markets. This has resulted in PLVVX falling considerably this year with a negative YTD return of 24%.
Utility Was the Second Biggest Drag on SPY as NRG Energy Crashed
The six-month beta of the stocks of AES, PPL, Public Service Enterprise, and Entergy was less than one. Meanwhile, NRG Energy’s six-month beta was around one.
Why SunEdison’s Leverage Keeps Growing—Even after GLBL IPO
SunEdison’s leverage is a major concern among investors and analysts.
The Industrial Production Report Pressured the Utility Sector
The Fed’s monthly index on Industrial Production for October 2015 noted that industrial production missed expectations. It fell by 0.2% in October due to weakness in the utilities and mining sectors.
Southern Company’s 3Q15 Revenues Missed Consensus Estimates
Southern Company reported revenues of $5.4 billion for 3Q15, which is ~6.1% lower than analyst estimates. Its revenues were ~1.2% higher than its reported revenues in 3Q14.
Calpine Improved Its Performance in 3Q15
After the 3Q15 earnings report, Calpine rose by 3.8% to close at $15.51 per share on October 30, 2015.
Why AES Underperformed the Utilities SPDR ETF in 2015
AES is set to announce its 3Q15 earnings on November 5, 2015. Since January 1, AES has highly underperformed the Utilities Select Sector SPDR Fund.
AES Is Streamlining Its Balance Sheet to Generate Cash
AES is taking steps to streamline its operations and reduce complexity, exiting many markets and businesses where it doesn’t have a competitive advantage.
How Does AES Corporation Categorize Its Businesses?
AES Corporation (AES) is a diversified power generation and utility company. It operates its business under six SBUs (strategic business units).
How Does AES Manage Its Businesses across 18 Countries?
AES has businesses spread across 18 countries and has various operating subsidiaries, each focusing on a specific area of business.
AES Corporation: Its Evolution Up until Now
AES Corporation is a global entity and operates through its six strategic business units, created based on the geographical areas they cater to.
Utilities Come Out Relatively Unscathed from the Market Mayhem
Out of the 40 utilities we track, only four gained during the week ended August 14, while the remaining 36 ended in red.
US Electricity Production Drops Marginally
US electricity production increased marginally to 70.9 million MWh during the week ending March 27 compared to 70.5 million MWh for the March 20 week.
US Electricity Production Drops Marginally
US electricity production decreased marginally to 70.5 million MWh in the week ending March 20 compared to 71.0 million MWh for the March 13 week.
US Electricity Generation Drops Sharply
Over 90% of the coal produced in the US is used for electricity generation. The utilities sector is coal’s largest end user.
US industrial production slows down in February
The Federal Reserve released industrial production data for February. Industrial production edged up by 0.1% in February against the expected 0.3%.
US Electricity Production Drops Marginally
Over 90% of the coal produced in the US is used for electricity production. The utilities segment is coal’s largest end user.
Henry Hub Natural Gas Benchmark Price Falls to 1 Cent above $3
Despite the neutral inventory report, natural gas prices fell marginally during the week ended March 6. The Henry Hub benchmark price dropped.
Illinois Basin coal prices dropped in November
The Illinois Basin covers most of Illinois and parts of Ohio and western Kentucky. The region produces bituminous coal with a heat value ranging from 10,000–12,500 British thermal units per pound.
Must-know: 3Q14 revenue composition of AES
Each of AES’ six strategic business units registered revenue growth compared to the same quarter last year, with Brazil showing the highest year-over-year revenue growth for the company.
Why Exelon’s revenue growth has been slow
Exelon Corporation’s (EXC) revenue grew at an annual rate of 4.7% for the last six years. The revenue growth been slow. It’s revenue growth came from mergers and acquisitions.