SRE to AEP: Five S&P utility stocks to explore amid recession fear

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SRE to AEP: Five S&P utility stocks to explore amid recession fear

 SRE to AEP: Five S&P utility stocks to explore amid recession fear
Image source: © AngieAgostino | Megapixl.com

Highlights:

  • DBA Sempra (NYSE: SRE) will release its Q2, FY22, earnings results on Aug 4.
  • Consolidated Edison, Inc. (NYSE: ED) will report its Q2, FY22, results on Aug 4.
  • Exelon Corporation's (NASDAQ: EXC) net income was US$106 million in Q1, FY22.

Utility stocks are companies that provide essential services like electricity, natural gas, water, waste disposal, etc. Demands for these services remain stable even during a market turmoil. Hence, these stocks are considered a safe bet in times of economic upheavals.

In June, US CPI inflation climbed to 9.1%, a fresh high since 1981. This relentless rise in prices has forced the central bank to tighten its monetary policies at the cost of growth, which could lead to a hard landing. The following are five S&P 500 utility stocks that may be worth exploring amid the current inflationary pressure.

DBA Sempra (NYSE: SRE)

Sempra is one of the leading utility firms that specializes in electric and natural gas infrastructure. It is based in San Diego, California.

The shares of the company traded at US$146.77 at 1:00 pm ET on July 14, up 0.03% from their closing price of July 13. Its stock value increased by 11.17% YTD.

The firm has a market cap of US$46.12 billion, a P/E ratio of 46.35, and a forward one-year P/E ratio of 17.28. Its current yield is 3.12%, and its annualized dividend is US$4.58.

The 52-week highest and lowest stock prices were US$173.28 and US$119.56, respectively. Its trading volume was 1,313,333 on July 13.

The company will release its Q2, FY22 earnings results on August 4, before the market opens.

Meanwhile, in Q1, FY22, its total revenue was US$3.82 billion, and its net income was US$657 million, or US$1.93 per diluted share.

Top dividend paying utility stocks to explore in Q3Source: ©2022 Kalkine Media®

Consolidated Edison, Inc. (NYSE: ED)

Consolidated Edison is one of the leading investor-owned energy companies based in New York.

The stock of the company traded at US$91.89 at 1:15 pm ET on July 14, down by 0.69% from its previous closing price. The ED stock rose 8.69% YTD.

The market cap of the company is US$32.54 billion, the P/E ratio is 21.26, and the forward one-year P/E ratio is 20.61. Its current yield is 3.4%, and its annualized dividend is US$3.16.

The stock touched the highest price of US$101.12 and the lowest price of US$71.52 in the last 52 weeks. Its share volume on July 13 was 1,230,098.

The company will report its Q2, FY22 earnings results on August 4, after the closing bell.

Meanwhile, in Q1, FY22, its total operating revenue was US$4.06 billion, and its net income was US$554 million, or US$1.70 per diluted share.

Atmos Energy Corporation (NYSE: ATO)

Atmos Energy is one of the largest natural gas distribution companies in the US. The company is based in Dallas, Texas.

The shares of the company traded at US$110.175 at 1:23 pm ET on July 14, down by 0.81% from their closing price of July 13. Its stock value soared 5.78% YTD.

The firm has a market cap of US$15.31 billion, a P/E ratio of 20.41, and a forward one-year P/E ratio of 20.12. Its current yield is 2.43%, and its annualized dividend is US$2.72.

The 52-week highest and lowest stock prices were US$122.95 and US$85.80, respectively. Its trading volume was 565,349 on July 13.

The company will release its third quarter fiscal 2022 financial results on August 4, at 10 am ET.

Meanwhile, in Q2, FY22, its operating revenue was US$1.64 billion, and its net income came in at US$324.99 million, or US$2.37 per diluted share.

Exelon Corporation (NASDAQ: EXC)

Exelon Corporation is a Chicago, Illinois-based utility holding firm that focuses on generating and delivering energy services.

The stock of the company traded at US$43.725 at 1:26 pm ET on July 14, up 0.29% from its previous closing price. The EXC stock jumped 7.6% YTD.

The market cap of the company is US$42.86 billion, the P/E ratio is 16.47, and the forward one-year P/E ratio is 19.12. Its current yield is 3.05%, and its annualized dividend is US$1.35.

The stock touched the highest price of US$58.21 and the lowest price of US$40.11 in the last 52 weeks. Its share volume on July 13 was 4,895,213.

The company's GAAP revenue was US$5.59 billion in Q1, FY22, as compared to US$5.55 billion in the year-ago quarter. Its net income attributable to common shareholders was US$106 million, against a loss of US$793 million in Q1, FY21.

Top S&P 500 utility stocks: SRE, ED, ATO, EXC, and AEP

American Electric Power Company, Inc. (NASDAQ: AEP)

American Electric Power is an electric utility firm based in Columbus, Ohio.

The shares of the company traded at US$93.32 at 1:31 pm ET on July 14, down by 0.62% from their closing price of July 13. Its stock value gained 5.97% YTD.

The firm has a market cap of US$47.91 billion, a P/E ratio of 17.86, and a forward one-year P/E ratio of 18.82. Its current yield is 3.31%, and its annualized dividend is US$3.12.

The 52-week highest and lowest stock prices were US$104.81 and US$80.22, respectively. Its trading volume was 2,071,104 on July 13.

The company's revenue was US$4.6 billion in Q1, FY22, as compared to US$4.3 billion in the same quarter of the previous year. Its GAAP earnings were US$714.7 million, or US$1.41 per share, versus US$575 million, or US$1.16 per share, in Q1, FY21.

Bottom line:

Due to various macroeconomic factors, the US market sharply declined in the first half of this year. All the indices have logged their worst first-half percentage decline in decades as investors traded cautiously amid uncertainties in the market. As the market downtrend continued, the utility sector was also no exception. The S&P 500’s utility sector fell 2.75% YTD while increasing 8.17% over the past 12 months. On the other hand, the overall index dropped 20.23% YTD and 12.99% in the last 12 months. Investors should carefully evaluate the companies and the market scenario before spending on stocks.

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