Category: US Utilities
The analysis published under this category are as follows.
Wednesday, May 05, 2021
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? / Companies / US Utilities
By: Chris_Vermeulen
We have experienced an incredible rally in many sectors over the past 5+ months. My research team has been pouring over the charts trying to identify how the next few weeks and months may play out in terms of continued trending or risks of some price volatility setting up. We believe the Utilities Sector may hold the key to understanding how and when the US markets will reach some level of stronger resistance as many sector ETFs are trading in new all-time high price ranges.
Utilities Sector Resistance At $71.10 Should Not Be Ignored
The Utilities Sector has continued to rally since setting up a unique bottom in late February 2021. A recent double top setup, near $68, suggests resistance exists just above current trading levels. Any continuation of this uptrend over the next few weeks, targeting the $70 Fibonacci 100% Measured Move, would place the XLU price just below the previous pre-COVID-19 highs near $71.10 (the MAGENTA Line).
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Tuesday, March 28, 2017
What A Westinghouse Bankruptcy Could Mean For U.S. Utilities / Companies / US Utilities
By: OilPrice_Com
International news services now report that Japan’s Toshiba Corporation (9502.T) is preparing to make a chapter 11 bankruptcy filing for its Westinghouse Electric subsidiary as soon as this Monday, March 27. For most of our readers this news evokes little surprise. This is merely another chapter of a slow moving financial and accounting train wreck involving nuclear design and construction firm Westinghouse and its troubled Japanese parent, Toshiba. But like an old, leaky garbage scow there is much to clean up in its wake.
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Wednesday, March 18, 2015
Utility Stocks Sector - The Most Crowded Trades on Wall Street / Companies / US Utilities
By: EconMatters
This crowded trade revolves around a common theme Central Bank Policy and its effects on financial markets. The third most crowded trade in our series is the Utility Sector Stocks. Investors have piled into this sector due to the perceived defensive nature of the sector with the fact that this sector pays a hefty dividend, a dividend higher than say a 10-Year Bond. And because bond yields have been driven so low by yield chasers, utility stocks get even more of a bid than they otherwise would given their fundamentals. In short, utility stocks and the utility sector in general have become surrogate bond instruments for investors.
Saturday, November 01, 2014
Will Utilities Continue to Drive Market Performance? / Companies / US Utilities
By: Investment_U
David Becker writes: Surprisingly, the rebound in stock prices at the end of October has been driven by the defensive sectors. The utility sector has been the best performer, notching up gains of nearly 6% during the first 21 trading days of October. The question for investors is: Can utilities continue to lead the broader markets higher in the last two months of 2014?
Tuesday, September 17, 2013
Getting Shocked by Utility Stocks / Companies / US Utilities
By: Don_Miller
Retirees' portfolios need to be defensive, meaning they minimize risk but still have the potential for growth and income. Historically, this meant including a few widow-and-orphan stocks in your retirement portfolio—public utilities with nice dividends.
Utilities experience little volatility, their dividends are solid, and the demand for their product is constant, regardless of how well the economy is doing. Government regulation also gives them a leg up, since utilities face little competition. They set their rates, consumers pay up with little fuss because they have few alternatives, and the utilities turn a profit.
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Thursday, August 22, 2013
Utility Stocks - Today’s Best Bond Alternative / Companies / US Utilities
By: Charles_Carnevale
To refer to any stock or equity as an alternative to bonds or fixed income is sure to stir up the ire and consternation of many professional and individual investors alike who deem themselves prudent. Frankly, under normal circumstances I would tend to agree. But the nature of bonds and other fixed income instruments are not normal today. With today’s extreme, and in the minds of many, contrived low level of interest rates, the risk profile of bonds and fixed income are far from typical. More simply stated, the currently extreme low level of interest offered by bonds and other fixed income instruments have dramatically altered, and I contend, increased their risk profile.
Saturday, August 11, 2012
Most U.S. Eastern Utility Stocks Are Overvalued / Companies / US Utilities
By: Charles_Carnevale
This is our fourth and final installment on assessing the relative valuation of utility stocks today. Our first installment part 1 looked at utility stocks in general. In part 2 we covered utilities operating in the Western part of the United States, and in part 3 we looked at utilities operating in the Central states. This final installment, part 4, will review utility stocks located in the Eastern region of the United States.
As we stated in previous installments, the utility sector is experiencing a lot of change. With growth long inhibited by regulators, utilities throughout the country have been looking for ways to diversify their businesses and/or develop new markets. Another change that is sweeping the industry is mergers and acquisitions.
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Tuesday, August 07, 2012
Investing in Central Utility Stocks - Do Today’s Valuations Make Sense? / Companies / US Utilities
By: Charles_Carnevale
This is the third in my series on investing in utility stocks based on the sector’s current valuation levels. The series was initially inspired by concerns that utility stocks may be overvalued because they had recently performed very well. When the series first started with Part 1, utility ETF’s were showing the best one-year performance of any sector. By the second installment Part 2, the utility sector had fallen into second place (Utility Sector Performance July 31, 2012). Since that time, utilities have fallen into fifth place with year-to-date performance of only 3.8% (see Utility Sector Performance August 3, 2012 below), this could be an indication that utilities are reaching full value.
Wednesday, August 01, 2012
Investing in Western Utility Stocks - Do Today’s Valuations Make Sense? / Companies / US Utilities
By: Charles_Carnevale
In part 1 of this series on utilities published on July 26, 2012, we looked at the utility sector with a broad brush. In this part 2, we will focus on utilities located in the western part of the United States. The series was inspired because of the apparent general impression that utility stocks are overvalued.
This impression stems from the fact that utilities have been the best performing sector over the past year. Therefore, people automatically assume that because an asset class has risen in price, that it must also be overvalued. However, if they have risen from previously undervaluation levels, this may not be the case. The following comparison of the performance of US ETF’s by sector first reported in part 1 on July 26, 2012, illustrates their recent outperformance.
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Thursday, July 26, 2012
Time to SELL Overvalued Utility Stocks / Companies / US Utilities
By: Charles_Carnevale
Recently, I’ve come across several discussions by dividend growth investors as to whether the utility sector is overvalued or not today. Therefore, I decided to look into the sector’s relative valuation as a whole to see what I could find. The only way to efficiently conduct this kind of research is to rely on a broad statistical array utilizing traditional valuation metrics.
However, before I report my findings there are some caveats and clarifications that I feel are very appropriate. First and foremost, I believe that any time you attempt to make broad generalizations about anything; you are by definition applying a great injustice to it. In other words, painting all utilities with the same broad brush is analogous to holding a prejudicial view of human beings based on attributes such as race, creed or color. This is neither rational, nor fair.
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Friday, July 13, 2012
Three Reasons Why Utility Stocks Are A Bargain Right Now / Companies / US Utilities
By: Roger_Conrad
US Regulatory Environment Remains Levelheaded
Utilities’ ability to stay strong depends on regulators granting a fair return on investment. The alternative, by contrast, is the surest way to undermine both shareholder returns and long-term system reliability.
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Friday, April 06, 2012
If You Think All Utility Stocks Are The Same - Think Again / Companies / US Utilities
By: Charles_Carnevale
I have recently seen comments on articles oriented to the dividend growth investor where people were suggesting that in general, utilities have recently become overvalued. Further discussion indicated that this was probably due to the fact that bond yields were so low that people were flocking to stable utility stocks in lieu of bonds therefore driving utility stock prices to abnormal highs. This article is primarily designed to take a more specific look at whether or not utility stocks as an asset class are currently overvalued. Secondarily, it is offered to expose the fallacy of thinking in generalities rather than more specifically.
Tuesday, September 07, 2010
Pump Up Your Investment Portfolio with Utilities Stocks / Companies / US Utilities
By: Money_Morning
Larry D. Spears writes: There was a time when the words "widows and orphans" pretty much defined utilities stocks. As well-regulated monopolies whose products were in constant and increasing demand, they provided a steady stream of income with a level of safety adequate for even the most conservative portfolios.
Because of more competition, looser rate regulation, and slower growth, utility stocks aren't quite the safe haven they once were. But with interest rates at all-time lows and continuing economic turmoil, they still have something to offer most investors.
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Friday, August 20, 2010
Utility Sector Divergence Between Smart and Dumb Money / Stock-Markets / US Utilities
By: Guy_Lerner
The Utility Sector is thought to be a safe haven in the time of market duress. There is no question that the market is under pressure, but I would be very careful about betting on the assumption (dogma?) that safety will be found in the Utility Sector. Currently, it should be noted that utility company insiders are net sellers of their shares to an extreme degree.
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Tuesday, June 22, 2010
Cheap Big American Utilities Paying Big Dividends / Companies / US Utilities
By: The_Energy_Report
Big American utilities pay big dividends, some as high as 8% among regulated utilities, and right now they're as cheap, relative to the bond market, as they've been in about a quarter century. If you like investments as income, few people who know the utilities equities better than Morgan Stanley Analyst Greg Gordon. In this exclusive two-part interview with The Energy Report, Greg eloquently and frankly explains the utilities market and offers some picks in the regulated utilities space. Part II will focus on Greg's picks among the deregulated utilities.
Monday, January 26, 2009
Constructive Pattern in XLU Utility Stocks ETF / Companies / US Utilities
By: Mike_Paulenoff
Apart from my sense that the Obama Administration is pro-energy efficiency, conservation, and "alternative," all of which implies a potential increase in electricity usage and production during the next 4-8 years, the technical set-up in the SPDR Select Utility ETF (AMEX: XLU) is very constructive.Read full article... Read full article...
Friday, April 25, 2008
Why Utilities Stocks Beat Treasury Bonds / Stock-Markets / US Utilities
By: Money_and_Markets
Nilus Mattive writes:I recently read an article on Forbes' website that attempted to help income investors compare the merits of utility stocks and U.S. Treasury bonds.
On the bad news side, the column noted that the yields on both utility shares and 10-year Treasuries are down about 50% since the beginning of 1995. Ouch!
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Monday, February 25, 2008
Utilities Sector Better Positioned to Weather Recession and Dividend Cuts / Stock-Markets / US Utilities
By: Roger_Conrad
Even in the best markets, dividend cuts are poison for income investors. Not only is your regular cash flow cut, but your principal typically takes a haircut as well.
Generally speaking, it's almost always best to avoid companies in danger of cutting dividends. The key is to pay close attention to operating businesses. As long as companies are coming in with solid numbers, dividends will be maintained and even increased.
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Wednesday, January 16, 2008
Utility Stocks Stll Positive Trend / Stock-Markets / US Utilities
By: Mike_Paulenoff
My overall work is telling me to remain long the XLU unless it breaks below the January 4 pivot low at 41.86. It is with that in mind that I intend to ride out this pullback ahead of the emergence of a new upleg that propels the sector to new highs in the 45.50-46.00 area.Read full article... Read full article...
Sunday, October 28, 2007
Utilities Analysis - Telecoms, Steel and Energy / Companies / US Utilities
By: Roger_Conrad
Is cable's goose cooked? Is the jig up on what's been torrid growth for the past few years? Are the big phone companies finally going to bury them?
That's certainly the line being trumpeted by the financial media this week. Once investor darlings, cable television stocks have plummeted in recent weeks, with the selling accelerating as third quarter earnings season has gotten underway.
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Monday, October 15, 2007
A Skeptical Eye On The Promised Demise of Big Utilities / Companies / US Utilities
By: Roger_Conrad
I've never been impressed by hype surrounding supposedly “disruptive” new technologies—developments billed to change the balance of power in an industry. And my skepticism meter goes positively off the chart when the claims pertain to communications and other utility-like industries.
Wednesday, September 05, 2007
Another Domino Falls as US Electric Power Deregulation Roll Back Continues / Companies / US Utilities
By: Roger_Conrad
When California passed its long awaited electricity deregulation law in 1996, it was supposed to signal the start of a revolution.
Proponents had argued for years that breaking up utility monopolies would trigger an explosion in generating capacity.
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Saturday, July 21, 2007
National Champions as Key to Success for Utilities Companies / Companies / US Utilities
By: Roger_Conrad
Regulatory support: That's the key to prosperity for energy, communications and water utilities all around the world.
If relations with the home country government are good, all will be well with the utility. Investment in infrastructure will be rewarded with competitive returns. Major challenges will be hurdled with minimal disruption or financial instability. And the company's investors will be rewarded with strong long-term total returns.
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Saturday, July 14, 2007
US Energy Policy Changes and Potential Profits / Companies / US Utilities
By: Roger_Conrad
Talking policy is cheap. Creating and implementing something that works is an entirely different matter. Just ask the army of politicians, bureaucrats, industry executives, academics, consumer advocates and analysts now working on major potential regulatory changes in the energy and communications industries.
The newly installed Democratic Congress has stated two goals for energy policy: promoting US energy independence from the increasingly volatile Middle East and curtailing emissions of greenhouse gases that produce global warming.
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Friday, July 06, 2007
Financial Markets Update - Ahead to US Elections 2008 / Politics / US Utilities
By: Roger_Conrad
Political parties' power waxes and wanes in Washington, DC. But regardless of who's in or out, the size of our federal government and its social and economic mandate continue to grow, for better or for worse.
At its core, politics is about interest groups. Those who get their views heard and acted on are the winners. Those who don't—or, worse, are trumped by others' interests—are the losers. And the larger the government grows, the more critical it is to be on the winning side.
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Saturday, June 02, 2007
US Interest Rates and Credit Ratings of Utilities / Companies / US Utilities
By: Roger_Conrad
Major credit raters like Standard & Poor's aren't perfect. But few sources provide more exhaustive research on the financial health of corporations, governments and anyone else who issues debt in the public markets.
For individual utility companies, a solid credit rating means a lower cost of capital and ultimately more-competitive rates and higher profits. For investors, an improving rating is a good sign the underlying business is strengthening—and that the company (and stock) are going to gain value over time.
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Thursday, May 24, 2007
Utility Futility Suggests the Bear is Growling / Stock-Markets / US Utilities
By: Brady_Willett
With S&P 500 bank/financial stocks the worst performing sectors so far in 2007, it is becoming clear that the inverted yield curve has damaged investor confidence in the group. Conversely, with utility stocks the best performing sector this year, it is obvious that investors have continued their defensive hunt for yield. Suffice to say, given that financial stocks typically outperform early in the cycle and utilities tend to beat other sectors late (or in the down cycle), the action in 2007 would seem to suggest that the bear is growling.Read full article... Read full article...
Friday, May 18, 2007
Utility Stocks, REITs, Canadian Trusts, Carbon Regulation, Interest Rate Outlook, Enerplus Resources & ETFs / Companies / US Utilities
By: Roger_Conrad
QUESTIONS & ANSWERS : Greetings from the Las Vegas Money Show conference. For attendees, investment seminars are always a golden opportunity to learn a range of perspectives. At the same time, it gives advisors like me a chance to better know readers' concerns and interests so we can do our job better.
In addition to several other events, I gave three presentations in Vegas on Canadian trusts, utility stocks and the likely beneficiaries of almost certain carbon regulation. Here's a sampling of the questions I received during my own presentations at the show, along with my answers.
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Saturday, May 12, 2007
Strategic Investing in Telecommunications, Utilities From 30,000 Feet Up / Companies / US Utilities
By: Roger_Conrad
Earlier this week, I got a call from a reporter at a major newspaper, asking for my “view from 30,000 feet up” on the power industry. Big picture perspectives are most useful when they help us to see the forest as a whole, rather than just tree-by-tree. They're downright dangerous, however, when analysts fall in love with their prognostications.Read full article... Read full article...
Saturday, April 28, 2007
Bigger and Better Utility Companies / Companies / US Utilities
By: Roger_Conrad
Size and scale have long been secrets to success in the business of providing essential services. Since the advent of mass-distributed electricity, natural gas, communications and water more than a century ago, companies have consistently become more profitable by getting bigger.Read full article... Read full article...
Saturday, March 31, 2007
Regulation Rules - The Risks of falling out of favour with the Industry Regulators / Companies / US Utilities
By: Roger_Conrad
When it comes to utilities' long-term profitability and performance, nothing is as important as regulation. In fact, nothing even comes close.
A good relationship with regulators can restore even the weakest player to health. And history is littered with examples of hostile relations ultimately wrecking even the most vibrant company's prospects.
Up until the late 1970s, US utilities operated under what came to be known as the regulatory compact. In recognition of the long-term, capital-intensive nature of building and maintaining essential service infrastructure, federal and state governments granted utilities monopolies. Companies were allowed to recover all prudently incurred expenses in customer rates, along with a solid return on invested capital.
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Monday, March 19, 2007
Another View on the recent Stock Market Panic / Stock-Markets / US Utilities
By: Roger_Conrad
Speaking engagements are one of the more useful aspects of my job.
This weekend, I'm at the Renaissance Waverly Hotel in Cobb County, Georgia, for the WealthExpo.
I look forward to meeting many readers and hearing of their concerns and queries, and I'll be summing them up in next week's Utility & Income. Utility Forecaster subscribers please note: This issue's Roundup has a brief, between-issues roundup of every Portfolio recommendation.
As the past week's extremely turbulent market events showed yet again, the world's investment markets are increasingly connected.
Events that may seem wholly unconnected on the other side of the globe are increasingly affecting investors everywhere.
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Thursday, March 15, 2007
US Utilities Analysis - The Greed Factor / Stock-Markets / US Utilities
By: Roger_Conrad
“Greed is good,” says Michael Douglas' Gordon Gekko in Oliver Stone's cult classic, Wall Street. Undeniably, the world's financial markets are based on self-interest, which is why they work so well moving capital around the globe. Money will only go where it can be used profitably--that is, filling a need and thereby increasing the world's wealth.
Markets work best, however, when the self-interest driving them is enlightened. In other words, there's a huge difference between decisions made solely to grab a big payday and those based on sound business principles.
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