|Bid||0.000 x 800|
|Ask||0.000 x 800|
|Day's Range||118.160 - 119.105|
|52 Week Range||104.820 - 125.540|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.12|
|Expense Ratio (net)||0.10%|
Let’s take a look at the utility sector’s total returns compared to those of other sectors so far this year. Broader utilities (XLU) have returned more than 3% this year, underperforming the broader markets. SPY, a representative of the broader markets, continues to make new highs and has returned 11% this year.
Southern Company (SO) expects to increase its EPS by 4%–6% annually for the next few years, which is in line with the industry average. Southern Company’s stock performance has been negatively affected by power plant issues in the last few years.
According to the latest 13F filing, Goldman Sachs and UBS Financial Services increased their stakes in the Utilities Select Sector SPDR ETF (XLU) in the second quarter. Goldman Sachs added net ~16 million units of XLU and held ~22% of its total outstanding shares as of June 30. In the first quarter, it held 11.5% of XLU’s total outstanding shares with ~16 million shares. UBS Financial Services bought net 8.7 million units of XLU and held 8.6% at the end of Q2 2018.
The Vanguard Group is the largest institutional investor in Georgia-based Southern Company (SO), second-largest regulated utility. Almost all of the top institutional investors increased their stake in Southern Company in the second quarter. BlackRock Institutional Trust was among the top sellers in SO in this period.
Utilities gained solid momentum primarily due to trade war concerns later in the second quarter despite the Fed delivering a second rate hike in June. In this series, we’ll see how institutional investors played out top utilities during the second quarter. So far this year, the Utilities Select Sector SPDR ETF (XLU), the representative of the S&P 500 utilities, has had a tepid run and has risen almost 2.0%—notably underperforming the broader markets.
The utilities sector is small. It accounts for just 2.85% of the S&P 500 and only three sectors have smaller weights in the benchmark U.S. equity gauge, but that diminutive status does not diminish the sector’s importance.
E*TRADE Financial Corporation today announced it has surpassed 250 commission-free ETFs with the addition of 46 ETFs from six providers to its Commission-Free ETF Pr
The Federal Reserve publishes capacity utilization data along with industrial production data every month. Capacity utilization in industries is a precise indicator of economic progress, as industries make changes to production planning depending on anticipated demand for their products. Capacity utilization, as the name suggests, is the percentage of capacity utilized of the total potential output.
In this article, we’ll discuss the factors that could affect Xcel Energy’s (XEL) dividends in the future. Xcel Energy aims to increase its long-term EPS by 5%–6%. Xcel Energy’s increased focus on expanding its renewables capacity and multiyear rate plans could boost its earnings in the long term.
Currently, the Utilities Select Sector SPDR ETF (XLU) is trading on par with its 50-day moving average and 3% lower than its 200-day moving average. The discount to its 200-day moving average level shows the weakness in XLU. XLU’s 200-day moving average level around $52.3 is expected to act as a resistance going forward. Currently, XLU is trading at $50.5.
Let’s see how institutional investors played Dominion Energy (D)—a laggard in the S&P 500 Utilities (XLU)—in the first quarter. According to recent 13F filings, the Vanguard Group is the top institutional investor in Dominion Energy. It added 0.9 million shares in the first quarter, raising its stake to 7.4%.
With a mean target price of $170.40 and a current price of $160.20, renewables titan NextEra Energy’s (NEE) stock has a potential upside of ~6.3% for the next 12 months. RBC raised NextEra Energy’s target price from $166 to $170 last week. Of the 14 analysts covering NextEra Energy, four recommend “strong buy,” eight recommend “buy,” two recommend “hold,” and none recommend “sell.”
According to a recent 13F filing, Goldman Sachs is the biggest institutional investor in the Utilities Select Sector SPDR ETF (XLU) with 11.5% of its total outstanding shares as of March 31. Goldman Sachs bought net 5.3 million shares, which grew the total number of shares to more than 16 million during the quarter.
Capacity utilization in US industries and industrial production data are published by the Federal Reserve every month. There are only a few economic indicators that act as a precise leading indicator for the US economy, and capacity utilization is one of them.
Xcel Energy (XEL), based in Minneapolis, Minnesota, is one of the largest regulated utilities in the country. Let’s look at institutional investors’ activity in the first quarter.
Utility stocks—generally called widow and orphan stocks—are one of the poorest performing sectors across the broader markets so far this year. They might continue to trade weakly, given the aggressive stance of the Fed. Along with a strong possibility of another quarter-point rate hike in June, traders are predicting three more rate hikes during the year. With the outlook for utilities not so exciting, we’ll see how institutional investors have recently played out their utilities (IDU) (VPU) holdings.
The utilities sector, one of the most sensitive sectors to interest rate hikes, has been subdued this year. The Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities Index, has fallen more than 4% year-to-date, while the S&P 500 has risen 3%. Strength in Treasury yields and faster-than-expected interest rate hikes have weighed on utilities this year.
Xcel Energy (XEL) is a pure-play regulated utility valued at $22.9 billion. Xcel Energy serves more than 5 million customers mainly in Minnesota, Colorado, and Michigan. The stock has fallen more than 6% year-to-date. Xcel Energy’s large exposure to regulated operations facilitates stable earnings and eventually stable dividends. To learn more, read How Xcel Energy’s Dividend Profile Compares to Peers.
Consolidated Edison (ED) is among the few largest regulated utilities in the country. So far in 2018, the stock has fallen almost 10%. Tax reforms, valuation concerns, and rising interest rates pulled utility stocks down in the last six months. The following chart shows the comparative stock price movement of Consolidated Edison along with broader utilities (XLU) (VPU).
The weakness in utility stocks last week has pushed them below their 50-day moving average levels. The Utilities Select Sector SPDR ETF (XLU) is currently trading on par with its 50-day moving average and 4% lower than its 200-day moving average. It looks weak given its moving averages, and $52.53 is expected to act as a resistance for it going forward. It’s currently trading at $50.38.
On April 24, PPL (PPL) stock was trading at par to its 50-day moving average and 16% below its 200-day moving average level. The significant discount to this level highlights the weakness in PPL stock. If PPL crosses above its 50-day moving average of $28.4 and continues to trade above this level, there could be some strength in the stock.
Are Tax Cuts and Deregulation Boosting Industrial Production? The Federal Reserve publishes capacity utilization data along with industrial production data for US industries every month. Capacity utilization change is one of the few economic indicators that acts as a leading indicator for the economy and helps in predicting changes to the US business cycle.
NextEra Energy (NEE), the biggest utility by market capitalization in the country, reported its 1Q18 earnings on April 24. The company’s strong performance continued in 1Q18. NextEra Energy reported an adjusted EPS (earnings per share) of $1.94 for the reported quarter and beat consensus estimates. In the same quarter last year, NextEra Energy reported an EPS of $1.75.