U.S. Markets close in 3 hrs 20 mins

How Top Utility Stocks Are Currently Valued

Vincent Kruger
How Top Utility Stocks Are Currently Valued

NextEra Energy (NEE), the biggest component in the Utilities Select Sector SPDR ETF (XLU), is currently trading at a forward PE multiple of 21x based on its estimated EPS for 2019. Its forward PE multiple is higher than its five-year historical average PE multiple of ~20x. Thus, the stock looks expensive considering its historical average as well as its 8% estimated earnings growth in 2019.