Will these 5 utility stocks have a smooth ride into the future?

Highlights

  • The total revenue of UGI Corporation (NYSE: UGI) was US$1.4 billion in Q3, 2021.
  • The operating revenue of Essential Utilities Inc (NYSE: WTRG) rose 3.3% YoY.
  • The shares of The AES Corporation (NYSE: AES) surged 2.20% in intraday trading.

The utility sector is one of the most significant economy-linked sectors. It comprises companies that provide basic services to consumers like water and sewage, electricity, natural gas, etc.

Investors typically see utility stocks as long-term investments. These companies typically grow when the economy is stable. We explore here five utility stocks that may benefit from the economic recovery in the near future.

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Sempra (NYSE: SRE)

The stock of this energy infrastructure company traded at US$132.85, up 0.67 percent, at 11:54 am ET on August 20 compared to its previous closing price. The stock value of SRE surged 6.6 percent YTD. Its market cap is US$42.4 billion, the P/E ratio is 19.34, and the forward P/E one year is 16.23. The earnings per share (EPS) is US$6.88.

The highest and lowest stock price of the San Diego, California-based company for the last 52 weeks was US$144.93 and US$112.33. Its share volume on August 19 was 1,025,460.

The company reported earnings of US$424 million or US$1.37 per diluted share in Q2, 2021, compared to US$2.239 billion or US$7.61 per diluted share in the year-ago quarter. On an adjusted basis, the earnings came in at US$504 million or US$1.63 per diluted share, compared to US$501 million or US$1.71 per diluted share in the corresponding period of 2020.

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Source: Pixabay.

UGI Corporation (NYSE: UGI)


The stock of this natural gas and electric power distribution company traded at US$46.66, up 0.93 percent, at 12:09 pm ET on August 20 compared to its previous closing price. The stock value of UGI rose 32.88 percent YTD.

It has a market capitalization of US$9.7 billion, with a P/E ratio of 10.29, and a forward P/E one year of 15.26. The earnings per share (EPS) is US$4.52.

The highest and lowest stock price of the Pennsylvania-based company for the last 52 weeks was US$48.55 and US$31.09. Its share volume on August 19 was 633,591.

In Q3, 2021, UGI Corp’s revenue rose to US$1.4 billion from US$1.1 billion in Q3 of 2020. The net income attributable to UGI Corporation came in at US$150 million, or US$0.71 per diluted share, compared to US$85 million, or US$0.41 per diluted share in the same quarter the previous year.

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Essential Utilities Inc (NYSE: WTRG)

The stock of this water services company was priced at US$49.09, up 0.59 percent, at 12:29 pm ET on August 20 compared to its previous closing price. The stock value of WTRG ticked up 5.65 percent YTD.

WTRG is a US$12.05 billion company by market value. Its P/E ratio is 29.56, the forward P/E one year is 29.22, and the earnings per share (EPS) is US$1.66.

The highest and lowest stock price of the Bryn Mawr, Pennsylvania-based company for the last 52 weeks was US$51.42 and US$38.28. Its share volume on August 19 was 953,406.

The operating revenue of the company surged 3.3 percent YoY to US$397 million in Q2, 2021, compared to US$384.5 million in the same quarter of the previous year. It logged an operating income of US$129.3 million. The net income of the company was US$80.9 million, up 8.4 percent, compared to US$74.6 million in the year-ago quarter. Its earnings per share came in at US$0.32 compared to US$0.29 in Q2, 2020.

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NiSource Inc (NYSE: NI)


The stock of this utility company traded at US$25.69, up 0.75 percent, at 12:49 pm ET on August 20 compared to its last closing price. The stock value of NI jumped 12.93 percent YTD.

Its market cap is US$10.06 billion, the P/E ratio is 49.35, and the forward P/E one year is 19.03. The earnings per share (EPS) is US$0.52. The highest and lowest stock price of the Merrillville, Indiana-based company for the last 52 weeks was US$26.60 and US$21.09. Its share volume was 4,638,539 on August 19.

In Q2 of 2021, its net income on a GAAP basis came in at US$46.5 million, or US$0.11 per diluted share, in Q2, 2021, compared to a net loss of US$18.5 million, or US$0.05 loss per diluted share, in the year-ago quarter.

On a non-GAAP basis, its net operating earnings available to common shareholders was US$52.6 million, or US$0.13 per diluted share, compared to US$50.2 million, or US$0.13 per diluted share, in the same quarter the previous year.

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The AES Corporation (NYSE: AES)

The stock of this electric power distribution company was priced at US$24.16, up 2.20 percent, at 1:11 pm ET on August 20 compared to its last closing price. The stock value of AES increased by 1.72 percent YTD. Its market cap is US$16.08 billion, and the forward P/E one year is 15.35. The earnings per share (EPS) is US$-0.21.

The highest and lowest stock price of the Virginia-based company for the last 52 weeks was US$29.07 and US$17.12. Its share volume was 5,192,591 on August 19.

The total revenue of the company came in at US$2.7 billion in Q2 of 2021, compared to US$2.2 billion in the year-ago quarter. Its operating margin was US$728 million compared to US$524 million in Q2, 2020. The company reported a net loss of US$77 million in Q2, 2021, compared to the net income of US$3 million in the same quarter the previous year.

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Bottomline

Utility companies that offer services like electricity, natural gas, and water, suffered losses in recent times due to the pandemic. However, these stocks may see a strong comeback with the economy getting back on its feet from the covid disruptions.

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