For Immediate Release
Chicago, IL –September 14, 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: FirstEnergy Corporation FE, IDACORP, Inc. IDA, DTE Energy Company DTE and Ameren Corporation AEE.
Here are highlights from Thursday’s Analyst Blog:
4 S&P 500-Beating Utility Stocks to Add This Month
September is a weak month for the stock market. Of the various reasons, the most common is that investors take time off during the summer months, which leads to an overall decline in trading volumes. Three leading indexes of the stock market, Dow Jones Industrial Average (DJIA), S&P 500 and Nasdaq, have historically performed the poorest in the month. Against the backdrop, investors can bet on domestic-focused utility stocks, which are steady performers and payout regular dividends.
Utility plays an important role in meeting basic requirements of households, businesses and the industry. The stability of electricity, water and natural gas services is not dependent on economic volatility. Utilities supply essentials that have no viable replacement. These are some of the factors that are the primary reasons for the steady performance of these companies
Utility companies continue to reward shareholders and raise their value through regular dividend and share buyback. This makes it a better investment options compared with bonds. Currently, the dividend yield of the Zacks Utility - Electric Power industry is 3.68%, higher than the S&P 500’s 1.76%.
In spite of U.S. administration’s recent move to revive the usage of coal, the utilities in the country are gradually shifting from coal and focusing on other fuel sources, which emit negligible volumes of carbon dioxide.
However, capital intensive utilities still have their share of weaknesses. Stringent emission rules, weather fluctuation and higher debt loads amid rising interest rates are major concerns for such entities.
Per out latest Earnings Preview, third-quarter earnings growth for Zacks Utility sector is pegged at 5.5% compared with the Zacks S&P 500 Composite’s 18.1%.
Selecting the Right Ones
Investment in equity market involves huge risk as it is a difficult task to select the right stock among many options. We have short listed five electric utility stocks, which carry a Zacks Rank #2 (Buy), have delivered average positive surprises in the past four quarters and projected an upward movement in their 2018 & 2019 Zacks Consensus Estimate in the past 60 days. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, the shares of the companies have fared better than the industry and the Zacks S&P 500 composites in the past six months.
FirstEnergy Corporation delivered an average positive earnings surprise of 4.74% in the past four quarters. The Zacks Consensus Estimate for 2018 and 2019 earnings moved up 3.0% and 0.4% in the past 60 days, respectively. The company’s expected EPS growth for the next five years is pegged at 6%. FirstEnergy has a dividend yield of 3.79%, higher than S&P 500 Composite’s 1.78%. In the past six months, the company’s shares have gained 13.0%.
IDACORP, Inc. delivered an average positive earnings surprise of 10.10% in the past four quarters. The Zacks Consensus Estimate for 2018 and 2019 earnings inched up 2.1% and 0.9% in the past 60 days, respectively. The company’s expected EPS growth for the next five years is pegged at 2.80%. IDACORP has a dividend yield of 2.37%.In the past six months, the company’s shares have gained 19.3%.
DTE Energy Company delivered an average positive earnings surprise of 5.69% in the past four quarters. The Zacks Consensus Estimate for 2018 and 2019 earnings moved up 6.7% and 3.6% in the past 60 days, respectively. The company’s expected EPS growth for the next five years is pegged at 5.30%. DTE Energy has a dividend yield of 3.12%. In the past six month, the company’s shares have increased 11.1%.
Ameren Corporation delivered an average earnings surprise of 7.69% in the past four quarters. The Zacks Consensus Estimate for 2018 and 2019 earnings moved up 5.6% and 0.6% in the past 60 days, respectively. The company’s expected EPS growth for the next five years is pegged at 6.60%. Ameren has a dividend yield of 2.80%. In the past six month, the company’s shares have returned 19.7%.
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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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FirstEnergy Corporation (FE) : Free Stock Analysis Report
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IDACORP, Inc. (IDA) : Free Stock Analysis Report
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