Many utility stocks seem to be trading at a large premium compared to the industry average. One of the top gainers, Exelon’s (EXC), stock is trading at 16 times its forward earnings at the moment, lower than peers’ average.
FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA valuation multiple of 8.0x, which is lower than its five-year historical average of 9.0x.
NRG Energy (NRG), the leading merchant power player stock and one of the smallest components of the S&P 500 Utilities Index (XLU), has a mean price target of $36.50 against its current market price of $31.20.
FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation of 8.4x.
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.
Analyst price target According to Wall Street analysts’ consensus, Duke Energy (DUK) stock has a mean price target of $82.30 and a current market price of $77.20, suggesting upside potential of 6.5% in the next 12 months. Among the 18 Wall Street analysts tracking Duke Energy on February 26, 2018, one had recommended “strong buy,” four had recommended “buy,” […]
Exelon Corporation (EXC) is the largest competitive utility in the country. All of the top five institutional investors increased their positions in Exelon in 4Q17.
NextEra Energy, the biggest component of the S&P 500 Utilities, has a mean target price of $165.2, which implies an estimated gain of 4% going forward.
While utilities have been on a losing spree lately, competitive utility stock FirstEnergy (FE) seems even weaker. It has lost more than 12% so far this month.
On November 8, FirstEnergy stock was trading at an EV-to-EBITDA valuation multiple of 8.5x. Its five-year historical valuation average is close to 9.0x.
AES stock looks to be trading at a discounted valuation compared to its peers. However, it seems to be trading at a fair premium to its historical average.
Exelon (EXC), the largest competitive utility in the country, has outperformed broader utilities in the past year and is trading at a yield similar to peers.
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.
US utilities including giants like Duke Energy (DUK) and Southern Company (SO) have done fairly well in the last few months compared to broader markets.
Utility stocks with high implied volatilities NRG Energy (NRG) rose 33% in the trailing year as of March 17, 2017. It had the highest implied volatility of all the utility companies that make up the Utilities Select Sector SPDR ETF (XLU). In the past five days, NRG Energy rose 1.1%. The above chart shows the […]
On February 15, 2017, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
According to analysts’ estimates, Exelon (EXC) is expected to report earnings of $0.45 per share in 4Q16. In 4Q15, it posted earnings of $0.38 per share.
The FirstEnergy (FE) stock has been trading near its 52-week low for the past several trading sessions, and it has corrected more than 6% in the past month.
Duke Energy rallied 9% in 2016, roughly tracking the Utilities Select Sector SPDR. Dominion Resources rose 12% in 2016, while Peer NextEra Energy rose 15%.
On January 5, 2017, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
According to the EIA, average residential electricity usage is expected to rise 4% from December 2016 to March 2017, as compared to one year previously.
Of the total 18 analysts tracking NextEra Energy on December 27, 2016, five recommend it as “strong buy” while 11 recommend it as a “buy.” Two analysts recommend NextEra Energy as a “hold,” and none of the analysts offered a “sell” recommendation.
FirstEnergy’s (FE) dividends fell 13% annually in the last five years. In 2014, FE cut its quarterly dividends from $0.55 per share to $0.36 per share.
Exelon Corporation (EXC) is trading at a dividend yield of 3.5%, and FirstEnergy (FE) is trading at a dividend yield of 4.6%. Public Service Enterprise Group (PEG) has a yield of 3.8%.
Exelon Corporation (EXC) had net debt of $34 billion at the end of 3Q16. EXC has a net debt-to-EBITDA ratio of 4.5x, slightly above the industry average.
FirstEnergy (FE) has been struggling during the last few years due to volatile power prices. Pennsylvania and Ohio are some of FirstEnergy’s key markets.
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).
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).
Duke Energy’s (DUK) adjusted return on equity stayed below 8% due to volatile earnings from international operations. This ROE was on the lower side of the industry average.
On November 16, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
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).
FirstEnergy (FE) reported its third quarter financial results on November 4, 2016. It reported total operating revenue of $3.92 billion for the quarter.
Public Service Enterprise Group (PEG) is expected to report earnings of $0.84 per share in the third quarter of 2016. It earned $0.80 per share in 3Q15.
As of September 28, 2016, NRG Energy (NRG) has the highest implied volatility figure of all the utility companies. NRG Energy’s implied volatility is 50.2%.
