Five utility stocks under US$50 to consider in times of inflation

Highlights

  • Exelon Corporation (NASDAQ: EXC) reported revenue of more than US$7 billion in Q2, FY21.

  • Hawaiian Electric Industries, Inc. (NYSE: HE) revenue rose more than 11% in Q2, FY21.

  • UGI Corporation (NYSE: UGI) is likely to report its Q4 results on November 18.

The utility sector is one of the most critical segments of the US economy, with a combined market cap of around US$1.5 trillion as of March 2021. In addition, the utility companies that provide daily essentials like water, sewage services, electricity, gas, etc., are always in demand as these services are everyday necessities.

Most utility companies are privately run and are heavily regulated. Also, many investors explore these stocks for the long term as these companies typically provide a steady regular income.

Here we explore utility stocks in the market gaining attention.

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Exelon Corporation (NASDAQ: EXC)

Exelon Corporation is a utility services holding company based in Chicago, Illinois, and has interests in electric generation.

The stock traded at US$48.87 at 12:18 pm ET on October 13, up 1.20% from its closing price of October 12. The stock increased by 17.29% YTD. It has a market cap of US$47.72 billion, a P/E ratio of 49.3, and a forward P/E one year of 17.12. Its EPS is US$0.99.

The 52-week highest and lowest stock prices were US$50.98 and US$38.35, respectively. Its trading volume was 4,428,950 on October 12.

On a GAAP basis, the company's revenue was US$7.91 billion in Q2, FY21, compared to US$7.32 billion in the same quarter of the previous year. Its net income came in at US$476 million, compared to US$574 million in Q2, FY20.

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Utility stocks: EXC, SPH, HE, FE, UGI

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Suburban Propane Partners, L.P. (NYSE: SPH)

Suburban Propane is a utility firm that supplies propane, fuel oil, and other related products. It is headquartered in Hanover, New Jersey.

The stock was priced at US$15.52 at 12:26 pm ET on October 13, down 0.26% from its previous closing price. The SPH stock rose 6.72% YTD. Its market cap is US$970.58 million, the P/E ratio is 9.95, and the forward P/E one year is 9.85. Its EPS is US$1.56.

The stock’s highest price was US$18.18, and the lowest price was US$14.06 in the last 52 weeks. Its share volume on October 12 was 178,376.

Its revenue was US$238.08 million in Q3, FY21, against US$206.90 million in Q3 of 2020. It reported a net loss of US$26.02 million, compared to US$15.57 million in Q3, FY20.

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Hawaiian Electric Industries, Inc. (NYSE: HE)

Hawaiian Electric is a Honolulu-based holding company that supplies electric.

The stock traded at US$39.89 at 12:31 pm ET on October 13, up 0.53% from its closing price of October 12. Its stock value surged 14.35% YTD. It has a market cap of US$4.37 billion, a P/E ratio of 18.02, and a forward P/E one year of 18.63. Its EPS is US$2.22.

The 52-week highest and lowest stock prices were US$45.97 and US$31.83, respectively. Its trading volume was 633,375 on October 12.

The company's total revenue was US$680.25 million in Q2, FY21, compared to US$608.94 million in the year-ago quarter. Its net income was US$64.34 million, compared to US$49.36 million in Q2, FY20.

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FirstEnergy Corp (NYSE: FE)

FirstEnergy is a utility company based in Akron, Ohio. It has interests in power generation, distribution, transmission. The stock was priced at US$35.64 at 12:36 pm ET on October 13, down 0.20% from its previous close. The FE stock jumped 21.01% YTD.

Its market cap is US$19.38 billion, the P/E ratio is 17.63, and the forward P/E one year is 13.95. Its EPS is US$2.02. The stock’s highest price was US$39.94, and the lowest price was US$26.16 in the last 52 weeks. Its share volume on October 12 was 3,478,966.

The company's revenue was US$2.6 billion in Q2, FY21, compared to US$2.5 billion in the prior year's same quarter. Its GAAP net earnings were US$58 million compared to US$309 million in the year-ago quarter.

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Utility stocks to explore under US$50

Source: Pixabay

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UGI Corporation (NYSE: UGI)

UGI Corp is a utility company based in Pennsylvania and distributes natural gas and electricity.

Its shares traded at US$43.71 at 12:43 pm ET on October 13, down 0.70% from its closing price of October 12. Its stock value grew 26.53% YTD. It has a market cap of US$9.13 billion, a P/E ratio of 9.66, and a forward P/E one year of 14.48. Its EPS is US$4.52.

The 52-week highest and lowest stock prices were US$48.55 and US$31.84, respectively. Its trading volume was 654,670 on October 12.

The company will release its fourth-quarter FY21 results on November 18.

Its total revenue was US$1.49 billion in Q3, FY21, compared to US$1.19 billion in the year-ago quarter. Its net income came in at US$150 million, compared to US$85 million in Q3, FY20.

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Bottomline

The utility sector is generally less volatile than other stock segments. The government's massive financial support for infrastructure has brought positive gains to the industry. The S&P 500 utility sector rose 2.45% YTD while increasing 0.71% QTD.

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