|Bid||142.85 x 1200|
|Ask||143.92 x 800|
|Day's Range||142.86 - 144.15|
|52 Week Range||119.51 - 144.15|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.07|
|Expense Ratio (net)||0.43%|
The Utilities Select Sector SPDR ETF (XLU), which represents S&P 500 utilities, hit a 52-week high of $56.80 on December 4. Utilities are on a roll after broader markets were shaken by trade tensions over the last couple of months.
Stock markets experienced a sharp fall on Dec 4 due to uncertainties surrounding trade talks and flattening of the yield curve, putting utility ETFs in focus.
Investors that embrace the utilities sector and exchange traded funds such as the Utilities Select Sector SPDR (XLU) often do so for two reasons: Above-average dividend yields and reduced volatility. During the recent bout of market volatility, utilities ETFs lived up to their shelter from the storm reputation. Over the past 90 days, XLU, the largest utilities ETF by assets, is up 3 percent while the S&P 500 is lower by 5.4 percent.
Dominion Energy (D), the third largest utility stock by market cap in the country, is currently trading at a dividend yield of 4.5%, notably higher than the broader utilities’ average. Dominion Energy’s current yield is also higher than its five-year average yield around 3.8%. It has a long dividend payment history and has paid a quarterly cash dividend for 362 consecutive quarters.
Goldman sees only 5% rise in the S&P 500 to 3,000 by 2019-end and suggests some investing tricks. Follow the bank with these ETF strategies.
Utilities (XLU) have returned more than 5% and have outperformed broader markets in 2018. We have considered the capital appreciation and dividends paid in a particular period to calculate the total returns. Recently, the technology (XLK) sector witnessed noteworthy weakness. The sector has fallen more than 15% since early October.
According to its latest 13F filing, The Vanguard Group increased its stake in Entergy Corporation (ETR) close to 12% in the quarter ended September 30. The Vanguard Group held approximately 21.7 million shares of Entergy’s total outstanding shares at the end of Q3 2018.
As U.S. markets continue to wobble, investors who want to stay in the game can look to defensive sector-related ETFs for a more steady approach. “If the sell-off continues and it deepens, it’s going to ...
Utilities at large are up almost 3% so far this year, marginally outperforming broader markets. Investors turned to the relatively safe utilities lately amid trade war tensions and a recent broad-market selloff. In this series, we’ll take a look at how institutional investors played utilities in the third quarter.
Utilities stocks and sector-related ETFs were among the better performers Friday as investors took a more optimistic view over the defensive sector in response to easing bankruptcy concerns from the recent California wildfires. On Friday, the Utilities Select Sector SPDR (XLU) gained 1.3%, Vanguard Utilities ETF (VPU) rose 1.2%, Fidelity MSCI Utilities Index ETF (FUTY) added 1.3%, iShares U.S. Utilities ETF (IDU) increased 1.1% and Reaves Utilities ETF (UTES) was 0.9% higher. “We’re tilted toward a negative near-term outcome and expect a slowdown,” Barry Bannister, head of institutional equity strategy at Stifel Nicolaus, told the Wall Street Journal, adding that they have increased exposure to sectors such as utilities, consumer staples and health care.
Utilities (IDU) (VPU) at large have rallied more than 7% since the Fed delivered its third rate hike in 2018 in September. The Utilities Select Sector SPDR ETF (XLU) is trading at $54.87—more than 2% and 6% above its 50-day and 200-day moving average levels, respectively. The premium to the support levels indicates strength in XLU. These moving average levels close to $53.70 and $51.58 could act as a support for XLU going forward.
Southern Company (SO), the fourth-biggest utility by market capitalization, released its third-quarter earnings on November 7. In the third quarter of 2017, Southern Company had an EPS of $1.12. Favorable weather and constructive regulatory results were some of the main drivers behind Southern Company’s earnings in the third quarter.
After a strong October, utility (IDU) (VPU) stocks started November off on a relatively weak note. The Utilities Select Sector SPDR ETF (XLU), the representative of the S&P 500 Utilities Index, broke below its 50-day moving average, which could indicate impending softness.
While the rest of the markets stumbled, utilities stocks and sector-related ETFs continued to push forward over October. Over the past month, the Utilities Select Sector SPDR (NYSEArca: XLU) gained 1.9%, ...
Duke Energy (DUK), the second-largest utility by market cap, reported its third-quarter earnings today. It reported adjusted earnings of $1.65 per share for the quarter ended September 30, beating analysts’ estimates of $1.52 per share. In the same quarter last year, Duke Energy earned $1.59 per share.
Southern Company (SO), one of the largest regulated utilities, is expected to report its third-quarter results on November 7. According to consensus estimates, Southern Company is expected to report total revenues of $6.35 billion for the quarter ending on September 30, which implies revenue growth of 2.3% year-over-year. The expanding customer base became vital for US utilities after the electricity usage per customer declined due to energy efficiency programs over the years.
Southern Company (SO), the second-largest regulated utility in the country and the top-yielding stock among the S&P 500 Utilities, rose 5% in October and outperformed broader utilities (XLU) (IDU). Currently, the stock is trading at $44.97, which is 1% above its 50-day moving average and marginally above its 200-day moving average level. Southern Company’s 50-day moving average level crossing below its 200-day moving average could be termed as a “death cross,” which technical analysts consider to be a bearish signal. Southern Company’s RSI (relative strength index) is at 67, which is approaching the “overbought” zone.
NextEra Energy (NEE), the biggest utility by market cap, reported its third-quarter earnings results on October 23. It reported adjusted EPS of $2.18, beating analysts’ estimate of $2.15.
Given their recent uptrend, utilities (XLU) have outperformed the broader markets this year. The Utilities Select Sector SPDR ETF (XLU) is currently trading at $54.57, nearly 2% and 6% higher than its 50-day and 200-day moving average levels, respectively. XLU is currently trading at an RSI (relative strength index) of 68.
Let’s take a look at the returns for utilities so far this year. Utilities (XLU) on average have returned 3%, while the broader markets have returned 5.5%. As we’ve already seen in this series, utility stocks were notably weak early this year, mainly due to the Fed’s aggressive stance on interest rate hikes. Recently, investors took shelter in utilities amid trade war tensions, mainly due to their high yields and stable stock movements.
The sell-off in utilities (IDU) last week pulled them below their 50-day moving averages, which indicates a renewed weakness. The Utilities Select Sector SPDR ETF (XLU) is currently trading 1% below its 50-day moving average and 3% above its 200-day moving average. Its 200-day moving average of $51.22 will likely act as a support for XLU in the short term. XLU closed at $52.95 on October 12.
Recently, utilities were weak, while benchmark Treasury yields peaked to a seven-year high. Similar weakness was witnessed in PPL (PPL) stock—one of the laggards among utilities this year. Currently, PPL is trading at $29.56, which is marginally above its 50-day moving average and 2% above its 200-day moving average. PPL’s 50-day moving average breaking above its 200-day moving average is called a “golden cross,” which is a bullish signal. PPL’s 200-day moving average level around $29.48 could act as a support for the stock going forward.
General Electric: Is There a Light at the End of the Tunnel? On June 26, General Electric (GE) went “long” on its Power segment. The segment’s share in General Electric’s Industrial segment’s gross revenues before corporate eliminations was 26% in the second quarter—compared to 33% the previous year.
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.