Exelon Corporation (EXC) is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple below 8.0x.
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.”
What is the dividend outlook? Entergy Corporation’s (ETR) present dividend yield of 4.6% has been driven by dividend growth and price loss. Dividends grew 2% each in 2016 and 2017. The dividend is projected to grow 2% in 2018. What is the projected dividend payout? The company recorded a dividend payout of 48% in 2016. […]
What led to the EPS decline? ETR’s cost of revenue fell 21% in 2016 before rising 15% in 9M17. In addition, gross profit expanded 3% in 2016 before falling 2% in 9M17. Operating expenses rose 8% and 14% in 2016 and 9M17, respectively, due to higher asset impairment and decommissioning charges in both the periods. […]
Among the four utility stocks under consideration in this series, FirstEnergy (FE) seems to offer the highest possible upside given analysts’ price targets.
Exelon (EXC), the largest nuclear power generator in the US, has warned it could close its Three Mile Island nuclear plant in Pennsylvania if it doesn’t receive state aid.
As of July 29, 2016, Public Service Enterprise Group (PEG) is trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 9x.
Duke Energy (DUK) reported a 17% fall in earnings for 1Q16, mainly due to mild weather and the sale of the company’s Midwest generation business last year.
Among our selected group of utilities, WEC Energy Group (WEC) has the highest expected dividend growth for the next two years. It’s trading at a forward yield of 3.4%.
Currently, DTE Energy (DTE) is trading at a discount compared to its own three-year historical forward dividend yield. Its smooth rally in the last six months could be one of the reasons.
Utilities are largely trading at a forward yield of about 4%. Their dividend growth is expected to be 4%–6%. Their earnings are expected to grow in this range.
The US economy contributes about 25.2% towards global GDP. In 3Q15, the US economy grew at an annualized rate of 2.1% due to an increase in consumer spending.
The average ETF weight of the electric utilities stocks in the SPDR S&P 500 ETF (SPY) is 0.08%. Their beta value is less than 1, and thus they’re less volatile.
The US manufacturing PMI fell to 52.8 in November, a decline of 1.3 points from October’s reading of 54.1. This is one of the weakest readings since October 2013.
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.
Leveraged loan funds saw an outflow for the week ending November 25. The quantum of outflows was $742.0 million last week—up from $306.2 million in the previous week.
Exelon’s fourth quarter earnings missed analysts’ estimates. This caused its share prices to fall. Its share prices fell by more than 3% since it announced its 4Q14 results.
Northman Grumman’s Technical Services segment saw its key metrics fall in both the quarter and fiscal 2014. International sales offset results somewhat.
Natural gas prices fluctuate based on changes in demand and supply. Producing its own natural gas will lower NextEra’s gas procurement costs significantly.
The industrial sector’s electricity consumption has been strong this year, registering positive year-over-year electricity consumption growth for the last consecutive seven months.
US power companies distribute a high percentage of their income to shareholders as dividends. Total returns are a better parameter to evaluate the sector’s performance.
Contrary to popular belief, falling natural gas prices affect power companies adversely. Unregulated power companies are more exposed to the risk of falling gas prices than regulated utilities.
First Energy’s 9% exposure to natural gas-fired power generation is quite low. This hurts First Energy, as producing electricity from natural gas provides a competitive advantage for power producers.
Natural gas forms the major source of fuel for Southern Company (SO) and constitutes 42% of its installed capacity. This benefits Southern Company to generate electricity at a lower cost.
Earnings beat consensus analyst estimates in 3Q14, but AES’ share price tumbled by more than 6% on result day due to management’s lowering of the 2014 guidance range.
Institutional investors hold most of Dominion Resources’ (D) outstanding shares. As of June 30, 2014, a total of 351.2 million shares were held by 1,069 institutions.
