|Bid||69.92 x 1200|
|Ask||69.93 x 4000|
|Day's Range||69.48 - 70.41|
|52 Week Range||56.32 - 71.10|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||8.71%|
|Beta (5Y Monthly)||0.19|
|Expense Ratio (net)||0.13%|
All three major indexes closed at record highs on Friday, led by a week of strong economic data and corporate earning results. The Final Round panel discusses the markets at the closing bell.
Utilities ETFs, including the Utilities Select Sector SPDR (XLU) , are performing admirably this year. Low bond yields and investors' desire for defensive assets in the wake of the coronavirus are helping the cause, but there may be more to the story. Momentum continues building for renewable energy over coal and that's not hurting electric utilities, such as those residing in XLU.
Public Service Enterprise Group Inc. , known as PSE&G, said Friday it raised its quarterly dividend by two cents to 49 cents a share. The new dividend will be payable March 31 to shareholders of record on March 10. The electric and gas utility company's stock rose 0.6% in midday trading. Based on current stock prices, the stock new annual dividend rate would imply a dividend yield of 3.33%, compared with the yield for the SPDR Utilities Select Sector ETF of 2.69% and the implied yield for the S&P 500 of 1.80%, according to FactSet. PSE&G's stock has lost 3.6% over the past three months, while the utilities ETF has run up 12.7% and the S&P 500 has gained 7.6%.
Shares of PPL Corp. edged up 0.3% in premarket trading Friday, after the utility reported a fourth-quarter profit that beat expectations but revenue that missed, and announced a 1/4-cent dividend increase. Net income fell to $364 million, or 48 cents a share, from $415 million, or 57 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to 57 cents from 52 cents, above the FactSet consensus of 53 cents. Revenue increased to $1.95 billion from $1.94 billion, but was below the FactSet consensus of $2.05 billion. The company expects 2020 EPS of $2.40 to $2.60, which surrounds the FactSet consensus of $2.52, while lowering its 2021 guidance range to $2.40 to $2.60 from $2.50 to $2.80. PPL increased its quarterly dividend to 41.50 cents a share from 41.25 cents, with the new dividend payable April 1 to shareholders of record on March 10. Based on Thursday's closing price of $36.28, the new annual dividend rate implies a dividend yield of 4.58%, compared with the yield for the SPDR Utilities Select Sector ETF of 2.73% and the S&P 500's implied yield of 1.79%. PPL's stock has gained 7.9% over the past three months while the utilities ETF has climbed 11.6% and the S&P 500 has gained 9.0%.
Value investing is the practice of trying to identify undervalued stocks in an effort to capitalize on the market's underestimation of their intrinsic value. Typically, investors look to a company's fundamentals, comparing them against similar businesses in order to identify potentially undervalued stocks.
With more than half the S&P 500 companies having reported fourth-quarter earnings, the earnings recession is now set to end. FactSet's blended earnings growth estimate, which includes already reported results and consensus analyst estimates of companies that haven't reported, is now showing a 0.09% gain from a year ago, compared with a negative 2.0% at the start of the earnings-reporting season. If the final results are positive, a three-quarter streak of negative growth would be snapped, and it only takes two-straight declines to define a recession. There's still a long way to go, as 275 of 505 S&P 500 companies, or 54.5%, have reported results, according to FactSet. The best sector performer has been utilities with 19.0% earnings growth, while energy has been the worst performer with a 42.7% decline. The S&P 500 gained 0.9% in morning trading, and has tacked on 3.0% this year.
Wall Street extended its decade-long bull run to start 2020, pushing the major indices to record highs on the initial trade deal and Q4 earnings optimism. However, the rally fizzled out last week following the coronavirus outbreak.
Utilities stocks and sector-related ETFs are outperforming in the new year as low yields in the fixed-income market and the coronavirus outbreak pushed investors toward this defensive play. The best performing utilities sector-related ETFs so far in January include the Utilities Select Sector SPDR (XLU) up 6.0%, Invesco DWA Utilities Momentum Portfolio (PUI) up 5.7% and Vanguard Utilities ETF (VPU) up 5.5%. Utilities stocks are now outperforming every other area of the S&P 500 and the benchmark index, the Wall Street Journal reports.
The utilities sector is made up of companies that provide electricity, natural gas, water, sewage and other services to homes and businesses. Many of these companies are heavily regulated, and they include Dominion Energy Inc.
Insider Monkey’s monthly activist newsletter is approaching its third anniversary. Our stock picks generated a total return of 87% vs. 47.7% for the S&P 500 Index ETF. Today, I am going to share a free stock pick to illustrate how we are able to beat the market by nearly 40 percentage points. I shared this […]
The utilities sector is slipping Monday, putting it on track to snap a long winning streak, although the conditions that helped prolong the win streak--falling Treasury yields and coronavirus-induced stock market weakness\--accelerated. The Dow Jones Utility Average slipped 0.2%, after rising 7.3% amid a 12-session win streak through Friday. That win streak is the longest such streak since the 12-day stretch ending July 15, 1992. The SPDR Utilities Select Sector ETF eased 0.3% to put it in danger of snapping an 11-day win streak, which would be the longest since the 12-day win streak ending June 2, 2017. Among the more-active joint components, shares of AES Corp. lost 1.6%, Exelon Corp. gave up 0.5% and CenterPoint Energy Inc. fell 0.7%, while Southern Co. gained 0.4%. Meanwhile, the Dow Jones Industrial Average tumbled 331 points, or 1.1%, toward a fifth-straight decline, and the yield on the 10-year Treasury note lost 7.5 basis points to a 3 1/2-month low of 1.606%. Utilities tend to perform well when Treasury yields fall, because investors tend to treat the sector as a bond proxy given the companies' relatively high dividend and stable earnings. That also makes utilities a defensive sector. The energy sector ETF's dividend yield is 2.80%, compared with the implied yield for the S&P 500 of 1.84%.
In the U.S., the coronavirus threat seems to more closely resemble what we see in the typical flu season, but on a much smaller scale. But the prospect of a disruption in global economies weighed on equities.
This article was originally published on ETFTrends.com. While stocks continue climbing higher on the back of robust animal spirits, it's logical that many investors are looking to growth fares, such as communication services and technology, but don't sleep on defensive groups. For example, the Utilities Select Sector SPDR (XLU) , the largest utilities sector ETF, jumped 3.66% last week.