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NEE, DUK, SO, and, D: How Top Utilities Are Currently Valued

Vincent Kruger
NEE, DUK, SO, and, D: How Top Utilities Are Currently Valued

Renewables titan NextEra Energy (NEE), the largest constituent of the Utilities Select Sector SPDR ETF (XLU), is currently trading at a PE multiple of ~14x. That’s much lower than its five-year average valuation. It thus appears to be trading at a discounted valuation. NextEra Energy is the top rallied stock among the top utilities so far this year. The second-largest utility by market cap, Duke Energy (DUK), is trading at a PE multiple of 21.0x, which is higher than its historical average.