There are no energy stocks in the S&P 500’s top 10. The biggest utility, NextEra Energy (NYSE: NEE), is only #56. And even all utilities and oil and gas stocks together are just 6 percent of the stock market’s premier blue chip index.
That’s historic underweighting. But since oil prices bottomed in spring 2020, the S&P Energy Index has beaten the technology-stock laden S&P 500 by nearly 160 percentage points.
After nearly two decades of flat demand, US utilities are already reporting substantial weather-adjusted increases. That’s from digitization of industries that require massive data collection and processing capabilities.
Nine more CUI Portfolio recommendations have announced Q2 results and updated guidance since the August issue went to post. I’ll have a full recap and analysis for each in the September issue. But here’s what you need to know now.
How low can deep value stocks go? If you own AT&T Inc (NYSE: T) and/or Verizon Communications (NYSE: VZ), you’re no doubt asking that question.
I’ve heard this “simple rule” repeated thousands of times by investors, media personalities and even fellow analysts since I came into the advisory business in the mid-1980s. And I’m certain it will be regurgitated thousands more times long after I leave it, hopefully some decades from now.
Yesterday, I posted the May issue of Conrad’s Utility Investor, highlighting what’s important from Q1 results and guidance updates for 29 Portfolio recommendations. Since then, seven more of top picks have released results.
Since the February issue of CUI posted, 15 more Portfolio recommendations have released calendar Q4 earnings and updated guidance. And none so far have been as potentially consequential as Dominion Energy’s (NYSE: D).
In the January CUI, I highlighted the dramatic drop in utility borrowing costs starting mid-October as a major catalyst for sector growth in 2024. Since then, we’ve seen investor concerns intensify that the Federal Reserve will delay reducing the benchmark Fed Funds rate until at least late summer.
Sellers were convinced higher for longer interest rates would undermine utility sector capital spending, and with it earnings and dividend growth, and priced stocks accordingly for a fall.But, so far at least, the fears of a sector-wide earnings Armageddon have proven to be wholly unfounded.
Utility investors received some very good news yesterday when US wind and solar leader NextEra Energy (NYSE: NEE) released surprise-free Q3 results and updated guidance.
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Roger's current take and vital statistics on more than 200 essential-services stocks.