Five utility stocks catching the attention of investors

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Five utility stocks catching the attention of investors

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 Five utility stocks catching the attention of investors
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Highlights

  • The operating revenue of NextEra Energy, Inc. (NYSE: NEE) was US$3.92 billion in Q2 of fiscal 2021.
  • The operating revenue of Dominion Energy, Inc. (NYSE: D) was US$3.03 billion in Q2 of fiscal 2021.
  • The net earnings of Fortis Inc. (NYSE: FTS) decreased by US$21 million to US$253 million in Q2 of fiscal 2021.

The utility sector comprises companies that provide essential services like water supply, waste disposal, and electricity. The performance of the sector often depends on the stability of the country as any economic or political disruption can negatively impact their growth.

Investors typically favor utility stocks for long-term investments. Here we explore some of the utility stocks that have been on investors’ radar of late.

NextEra Energy, Inc. (NYSE: NEE)

NextEra Energy, Inc. is an electric utility company that generates and distributes power. The Florida-based company also focuses on renewable energy generation.

The NEE stock was priced at US$86.095 at 11:53 am ET on September 9, down 0.40 percent from its previous closing price. The stock gained 16.46 percent YTD.

Its market cap is US$169.08 billion, while the P/E Ratio and the forward P/E one-year ratio are 54.04 and 34.30, respectively. Its EPS is US$1.60.

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NextEra’s 52-week highest and lowest stock prices were US$87.69 and US$66.78, respectively. Its share volume on September 8 was 6,230,117.

The company’s operating revenue in Q2 FY 2021 was US$3.92 billion compared to US$4.20 billion in the same quarter of the previous year. Its operating income was US$510 million against US$1.18 billion in Q2 of 2020.

The net income attributable to the company was US$256 million, or US$0.13 per share, compared to US$1.27 billion, or US$0.65 per share in Q2 of fiscal 2020.

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Duke Energy Corporation (NYSE: DUK)


Duke Energy Corporation is a Charlotte, North Carolina-based utility holding company that deals with natural gas and electric power.

The DUK stock traded at US$104.73 at 12:10 pm ET on September 9, down 0.57 percent from its closing price. Its stock value rose by 17.41 percent YTD.

Duke Energy has a market cap of US$80.61 billion, a P/E Ratio of 27.36, and a forward P/E one year of 20.22. Its EPS is US$3.83.

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Duke Energy’s 52-week highest and lowest stock prices were US$103.38 and US$80.41, respectively. Its share volume was 3,616,351 on September 8.

The company’s total operating revenue in Q2 FY 2021 was US$5.75 billion compared to US$5.42 billion in the year-ago quarter. Its operating income was US$1.16 billion against US$1.17 billion in the previous year’s corresponding quarter.

The net income available for the common shareholders of the company is US$751 million, or US$0.96 per share against a loss of US$817 million, or US$1.13 per share in Q2 of FY 2020.

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Dominion Energy, Inc. (NYSE: D)


Dominion Energy generates and supplies electricity in the US. It is headquartered in Richmond, Virginia. The stock was priced at US$78.50 at 12:29 pm ET on September 9, up 0.85 percent from the previous closing price. Dominion's stock rose 5.35 percent YTD.

Dominion Energy’s market cap is US$63.45 billion, while the P/E Ratio and the forward P/E one-year ratio are 28.13 and 20.11, respectively. Its EPS is US$2.79.

Dominion Energy’s 52-week highest and lowest stock prices were US$86.95 and US$67.85, respectively. Its share volume on September 8 was 3,233,251.

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The company’s operating revenue in Q2 FY 2021 was US$3.03 billion against US$3.10 billion in the year-ago quarter. In addition, its income from operations came in at US$363 million, against US$804 million in Q2 of FY 2020.

The net income attributable to the company was US$285 million, or US$0.33 per share, against a loss of US$1.16 billion, or US$1.52 per share in Q2 of FY 2020. In Q3 of FY21, Dominion Energy projects its operating earnings to be between US$0.95 per share and US$1.10 per share.

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Fortis Inc. (NYSE: FTS)


Fortis Inc. is a holding company that provides electric and gas utility services in Canada and the US. It is headquartered in St. John's, Canada.

The Fortis stock traded at US$46.29 at 12:48 pm ET on September 9, up 0.15 percent from its previous closing price. The stock soared 13.26 percent YTD.

Fortis has a market cap of US$21.79 billion, while the P/E Ratio and the forward P/E one year are 22.68 and 21.20, respectively. Its EPS is US$2.04.

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Fortis’ 52-week highest and lowest stock prices were US$47.02 and US$38.49, respectively. Its share volume was 334,015 on September 8.

Fortis reported net earnings of US$253 million or US$0.54 per common share in Q2 of FY 2021, representing a decrease of US$21 million, or US$0.05 per common share from Q2 of FY 2020.

In addition, its adjusted net earnings were US$259 million, or US$0.55 per share, against US$258 million, or US$0.56 per share in Q2 of FY 2020.

Source: Pixabay


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FirstEnergy Corp. (NYSE: FE)


FirstEnergy Corp. is an Ohio-based utility holding company that distribution electricity. In addition, the firm provides energy management services.

The stock was priced at US$38.51 at 12:56 pm ET on September 9, down 1.10 percent from its previous close. The FE stock rose 31.96 percent YTD.

FirstEnergy’s market cap is US$20.95 billion, while the P/E Ratio and the forward P/E one-year ratio are 19.06 and 15.27, respectively. Its EPS is US$2.02.

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The highest and lowest stock prices in the last 52 weeks were US$39.94 and US$26.16, respectively. Its share volume was 2,832,230 on September 8.

On a GAAP basis, the company’s net income came in at US$58 million, or US$0.11 per diluted share in Q2 of FY 2021 against an income of US$309 million, or US$0.72 per share in the year-ago quarter. For the six months ended June 30, 2021, its net income was US$393 million against US$383 million in Q2 of FY 2020.

FirstEnergy expects Q3, FY21 net income to be between US$380 million and US$435 million, full-year FY21 net income to be between US$1.0 billion and US$1.11 billion.

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Bottomline

The utility is one of the major components of the US economy, with a market cap of around US$1.5 trillion as of March 2021. The utility segment of the S&P 500 index rose 10.56 percent YTD. Analysts remain optimistic about its growth with the economic activities gaining pace.

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