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Highlights:
- DBA Sempra (NYSE:SRE) is slated to report its earnings for the latest quarter on November 3 at 7 am ET.
- The SJI stock rose around 29 per cent YTD.
- PNM Resources, Inc. (NYSE:PNM) would report its earnings for Q3 FY22 on November 4.
Investors generally look for safer assets in times of economic uncertainties to avoid higher losses. While it is not possible to fully predict the future trading of any sector, it is historically seen that the utility sector has remained stable in comparison to other sectors, especially during a recessionary period, with demands tending to remain stable even during an economic downturn.
Now, given the rising concerns over a potential recession triggered by soaring prices and higher jumps in the policy rates, investors are looking for shelter under lesser risks investments. Some of the major utility companies include DBA Sempra (NYSE: SRE), South Jersey Industries, Inc. (NYSE:SJI), and PNM Resources, Inc. (NYSE: PNM).
So, let's take a look at some of the utility stocks, that may continue to be on the investors' radar in the running quarter:
DBA Sempra (NYSE:SRE)
Sempra is an energy infrastructure and utility corporation with a dividend yield of 3.24 per cent. The US$ 44.47 billion market cap company claims to develop and operate infrastructure that is essential for fulfilling global energy and climate needs.
The San Diego-based firm said on October 13 that it would release its Q3 FY22 earnings results on Thursday, November 3, at 7 am ET. Meanwhile, in Q2 FY22, the utility firm, Sempra's net income was US$ 659 million on revenue of US$ 3.54 billion, against an income of US$ 455 million on revenue of US$ 2.74 billion in Q2 FY21.
Given the closing price of the SRE stock on October 14, 2022, of US$ 141.50, its price was up nearly seven per cent this year and over 10 per cent YoY. The stock of the utility firm touched its 52-week high of US$ 176.47 on September 12.
South Jersey Industries, Inc. (NYSE:SJI)
The stock of the public natural gas utility holding firm closed at US$ 33.72 on Friday, October 14, and considering that close, its total return was about 29 per cent this year and 49 per cent YoY.
The utility firm, with a dividend yield of 3.68 per cent reported a revenue of US$ 511.43 million, while its net loss totaled US$ 18.90 million in Q2 FY22. In the year-ago period, South Jersey Industries' net loss was US$ 96.82 million on revenue of US$ 311.82 million.
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PNM Resources, Inc. (NYSE:PNM)
PNM Resources is an electric services company with a dividend yield of 3.04 per cent. The stock of the company, which provides electricity through its regulated utilities, traded flat this year while losing around eight per cent YoY.
The utility firm said that would report its Q3 FY22 earnings results on Friday, November 4, and would host a live conference call at 11 am ET.
Meanwhile, in Q2 FY22, PNM Resources Inc's net electric operating revenue was US$ 499.73 million, and its net earnings were US$ 19.12 million. Compared to the year-ago quarter, the total electric operating revenue and net income of the Albuquerque, New Mexico-based company were US$ 426.54 million and US$ 57.76 million, respectively.
Bottom line:
Utility stocks sometimes also attract some dividend-focused investors, as some of the companies generally pay out a robust dividend to the investors, while creating opportunities for a regular income for the traders. However, there is no fixed rule that all utility stocks would pay a dividend to the investors.
However, before deciding on any move, it is important to understand the health of the market as well as how the sector works. The demand for the utility sector tends to remain stable as they offer necessary services to the consumers like electricity, gas, etc.
But, considering the volatile performance of all the sectors in recent times, investors must do thorough research before making any bets. The S&P 500 utilities segment fell over five per cent YoY and 13 per cent YTD, less than the decline of the overall S&P 500 index of over 24 per cent this year.
