Free Annual Reports
Utilities Rising
Utility stocks have never been first on the market's excitement list. As a group, they're more suited to widows' and orphans' portfolios than the fast-food, day-trade-oriented crowd's current list of actionables.
That said, there are a handful of mainstream utility companies that have done a whole lot better than the rest. Here are three of the standouts, each of whom also possesses some rather darling fundamentals, for the value-oriented crowd.
IN PICTURES: 9 Simple Investing Ratios You Need To Know
Leading from Middle of the Pack
First up is CenterPoint Energy, Inc. (NYSE:CNP), whose stock has risen by nearly 28% in the last twelve months. That beats the Utilities SPDR ETF (NYSE:XLU) which is up only 7.7% over the same period. Incidentally, CNP pays an annual dividend of 5% while the ETF pays nothing. For the sake of comparison, the S&P 500's proxy ETF, the SPDR S&P 500 (NYSE:SPY), has returned less than 10% for the year.
CenterPoint transmits electricity to a 5,000-square mile area on the Texas Gulf Coast that includes the Metropolitan Houston area. It also owns and operates natural gas distribution systems in six U.S. states.
CenterPoint trades with a P/E of 14.7. Just under 70% of the company's float is held by institutional investors.
Low P/E for Dominion
Stock in Dominion Resources, Inc. (NYSE:D) was up better than 29% in the last year, before the dividend payout. Currently, the shares yield 4.1% and trade at a multiple of 9.8x last year's earnings.
Dominion, too, is a transporter of energy: electricity to customers in Virginia and North Carolina and natural gas to customers across a dozen states.
Second-quarter earnings for the company came in startlingly higher than for the same period last year. Q2, 2009 saw earnings of $0.76 per share, compared to $2.98 for this year. A full 58% of the company's shares are owned by institutions.
From the Gulf to New England
NiSource, Inc. (NYSE:NI) pays an annual 5.3% dividend and trades with a P/E of just under 16.0. Price-to-book and price-to-sales for the company are also very attractive, coming in at 0.98 and 0.78 respectively. Most attractive perhaps is the company's performance over the last year. The shares are up nearly 25% in that time.
NiSource serves electricity and natural gas to customers running from the Gulf Coast through the Midwest to New England.
The Bottom Line
Utilities that pay roughly 5% and have risen over 25% in the last year are worth owning. In a sector whose moves are akin to watching paint dry, come three companies sporting impressive growth. (To learn more, see Trust In Utilities.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
That said, there are a handful of mainstream utility companies that have done a whole lot better than the rest. Here are three of the standouts, each of whom also possesses some rather darling fundamentals, for the value-oriented crowd.
IN PICTURES: 9 Simple Investing Ratios You Need To Know
Leading from Middle of the Pack
First up is CenterPoint Energy, Inc. (NYSE:CNP), whose stock has risen by nearly 28% in the last twelve months. That beats the Utilities SPDR ETF (NYSE:XLU) which is up only 7.7% over the same period. Incidentally, CNP pays an annual dividend of 5% while the ETF pays nothing. For the sake of comparison, the S&P 500's proxy ETF, the SPDR S&P 500 (NYSE:SPY), has returned less than 10% for the year.
CenterPoint transmits electricity to a 5,000-square mile area on the Texas Gulf Coast that includes the Metropolitan Houston area. It also owns and operates natural gas distribution systems in six U.S. states.
CenterPoint trades with a P/E of 14.7. Just under 70% of the company's float is held by institutional investors.
Stock in Dominion Resources, Inc. (NYSE:D) was up better than 29% in the last year, before the dividend payout. Currently, the shares yield 4.1% and trade at a multiple of 9.8x last year's earnings.
Dominion, too, is a transporter of energy: electricity to customers in Virginia and North Carolina and natural gas to customers across a dozen states.
Second-quarter earnings for the company came in startlingly higher than for the same period last year. Q2, 2009 saw earnings of $0.76 per share, compared to $2.98 for this year. A full 58% of the company's shares are owned by institutions.
From the Gulf to New England
NiSource, Inc. (NYSE:NI) pays an annual 5.3% dividend and trades with a P/E of just under 16.0. Price-to-book and price-to-sales for the company are also very attractive, coming in at 0.98 and 0.78 respectively. Most attractive perhaps is the company's performance over the last year. The shares are up nearly 25% in that time.
NiSource serves electricity and natural gas to customers running from the Gulf Coast through the Midwest to New England.
The Bottom Line
Utilities that pay roughly 5% and have risen over 25% in the last year are worth owning. In a sector whose moves are akin to watching paint dry, come three companies sporting impressive growth. (To learn more, see Trust In Utilities.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
Free Annual Reports
