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The Zacks Analyst Blog Highlights: Algonquin Power, CMS, Ameren and Brookfield Renewable

Zacks Equity Research
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For Immediate Release

Chicago, IL –July 16, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Algonquin Power & Utilities Corp. AQN, CMS Energy Corp. CMS, Ameren Corp. AEE and Brookfield Renewable Partners L.P. BEP.

Here are highlights from Friday’s Analyst Blog:

4 Utility Stocks to Buy as US-China Trade War Escalates

The trade war between the United States and China just got worse, with President Trump unveiling a fresh round of tariffs on imports from China. While China has responded that it would impose retaliatory tariffs, it did not divulge details about its plan of action.

Renewed fears of a trade war may result in a scurry toward safe-haven sectors as preferred investments. One of the most-popular, safe-haven sectors is utilities. This sector comprises companies that provide telephone, gas, water and electricity services.

The Utilities Select Sector SPDR exchange-traded fund has gained over 8% in the past month against the S&P 500’s decline of 0.3%. Under such circumstances, investing in companies from the utility sector seems prudent.

U.S. Blasts China with Additional Import Tariffs

On Jul 10, the Trump administration unveiled a spate of fresh tariffs on imports from China. Trade Representative Robert Lighthizer stated that Chinese commodities worth $200 billion such as fruits and vegetables, handbags, refrigerators, rain jackets and baseball gloves among others could be charged with 10% tariffs.

The newly proposed tariffs would undergo a two-month review post which a decision on its future would be taken. Trump reasoned that he is wary of China’s unfair trade practice and the country’s tendency to steal intellectual property from the United States.

China Promises to Hit Back at Trump’s Tariffs

On Jul 11, Beijing announced that it planned to retaliate against Trump’s most recent tariffs. However, the country did not reveal any details about how it would hit back at White House’s fresh round of duties. This has resulted in approximately $250 billion worth of Chinese goods being subject to import tariffs from the United States.

The country’s commerce ministry termed such an act by the United States as "totally unacceptable" heightening of the already existing trade dispute between the two countries. Further, the ministry pledged to safeguard the country’s "core interests." Finally, the Chinese ministry also vowed to impose “necessary countermeasures” on the United States if the need be.

4 Best Choices

The trade-war between the United States and China shows no signs of ebbing any sooner. This has got more to do with Trump’s new tariffs on additional goods worth $200 billion from China. Although China has not retaliated with a tit-for-tat tariff, it is not expected to back off.

Under circumstances where geopolitical conditions remain unfavorable, investing in safe-haven stocks such as utilities would be advisable. In this context, we have selected four stocks that are expected to gain from these factors. These five stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Algonquin Power & Utilities Corp. is the owner and operator of regulated as well as non-regulated generation and distribution utility assets in Canada and the United States.

The company is based out of Oakville, Canada and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 13.79%. The Zacks Consensus Estimate for the current year has improved 8.2% over the last 60 days.

CMS Energy Corp. engages in generation, distribution and transmission of electricity as well as natural gas.

The company is based out of Jackson, MI and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 7.53%. The Zacks Consensus Estimate for the current year has improved 5.8% over the last 60 days.

Ameren Corp. engages in rate-regulated generation, transmission as well as distribution of electricity.

The company is based out of St. Louis, MO and has a Zacks Rank #2. The expected earnings growth rate for the current year is 7.49%. The Zacks Consensus Estimate for the current year has improved 8.5% over the last 60 days.

Brookfield Renewable Partners L.P. is the owner and operator of renewable power generating facilities across the globe.

The Zacks Rank #2 company is based out of Hamilton, Bermuda. The expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 57.1% over the last 60 days.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Ameren Corporation (AEE) : Free Stock Analysis Report
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Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
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