Top Utilities Stocks for August 2022

NRG is top for value, PCG is top for growth, and EXC is top for momentum

The utilities sector is made up of companies that provide electricity, natural gas, water, sewage, and other services to homes and businesses. Many of these companies are heavily regulated. They include major utilities companies such as Dominion Energy Inc., Duke Energy Corp., and Xcel Energy Inc.

Utilities stocks, as represented by the Utilities Select Sector SPDR ETF (XLU), an exchange-traded fund (ETF), have significantly outpaced the broader U.S. stock market over the past year. XLU has provided a total return of 12.4% over the past 12 months, compared with the Russell 1000 Index’s total return of -9.4%. These market performance numbers and all statistics in the tables below are as of June 24, 2022.

Here are the top three utilities stocks with the best value, fastest growth, and most momentum.

Best Value Utilities Stocks

These are the utilities stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Best Value Utilities Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
NRG Energy Inc. (NRG) 38.32 9.0 2.3
UGI Corp. (UGI) 39.47 8.3 5.6
OGE Energy Corp. (OGE) 37.61 7.4 7.7

Source: YCharts

  • NRG Energy Inc.: NRG Energy is an integrated power company that generates electricity and provides energy solutions and natural gas to residential, commercial, and industrial customers throughout the United States and Canada. On May 6, NRG reported $1.7 billion in net income compared with net loss for the prior-year quarter on a small decline in revenue year-over-year (YOY). Substantial improvement in both the Texas and East segments contributed to income performance.
  • UGI Corp.: UGI, through its subsidiaries, distributes and markets energy products and services worldwide. The company operates natural gas and electric utilities, distributes energy, manages midstream energy assets, and more.
  • OGE Energy Corp: OGE Energy is a holding company with investments in energy and energy service providers offering physical delivery for electricity in Oklahoma and western Arkansas. It is the parent company of Oklahoma Gas and Electric Co.

Fastest-Growing Utilities Stocks

These are the top utilities stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with a quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest-Growing Utilities Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
PG&E Corp. (PCG) 10.25 20.4 266.7 22.9
UGI Corp. (UGI) 39.47 8.3 85.4 34.3
DTE Energy Co. (DTE) 122.91 23.3 -1.0 27.8

Source: YCharts

  • PG&E Corp.: PG&E is a holding company that, through subsidiaries, provides electricity and natural gas sales and delivery to customers primarily in California. On June 21, the company's subsidiary Pacific Gas and Electric Co. declared a dividend for eight series of preferred stock for the three-month period ending July 31. The dividends range from $0.27250 to $0.37500. Dividends are payable Aug. 15 to shareholders of record as of July 29, 2022.
  • UGI Corp.: See company description above.
  • DTE Energy Co.: DTE Energy is a Detroit-based diversified energy company with operating units that include an electric utility that serves customers in southeastern Michigan and a natural gas utility serving customers throughout Michigan. On June 6, the company announced that its 1,150 megawatt combined-cycle natural gas-fired power plant, Blue Water Energy Center, began commercial operation. The company expects the plant to provide clean and affordable power to 850,000 homes in southeast Michigan.

Utilities Stocks with the Most Momentum

These are the utilities stocks that had the highest total return over the past 12 months.

Utilities Stocks with the Most Momentum
Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Exelon Corp. (EXC) 43.29 41.4 39.1
Vistra Corp. (VST) 23.39 10.1 32.2
Consolidated Edison Inc. (ED) 92.93 32.9 31.4
Russell 1000 N/A N/A -9.4
Utilities Select Sector SPDR ETF (XLU) N/A N/A 12.4

Source: YCharts

  • Exelon Corp.: Exelon is a utility services holding company. It provides energy generation, marketing, and delivery services. Exelon has operations in the Midwest, the mid-Atlantic, New York, and elsewhere around the country.
  • Vistra Corp.: Vistra is a holding company that, through subsidiaries, is involved in electricity generation, wholesale purchases and sales of energy, commodity risk management, and retail sales of electricity and natural gas. On June 7, the company announced that its Emerald Grove Solar Facility in Texas was online and operational for the summer. It marks the third of seven renewable and energy storage projects the company is launching across Texas in the coming years. The three projects online at this point total 418 MW and are part of the company's goal of moving to zero-carbon power generation.
  • Consolidated Edison Inc.: Consolidated Edison is a holding company that, through subsidiaries, provides energy-related products and services. Its primary business includes regulated electric, gas, and steam utilities. Con Edison reported Q1 2022 earnings on May 5. Net income for common stock climbed by 43.7% and total operating revenues grew by 10.4% YOY. Higher gas and electric operating revenues were key drivers of earnings growth.

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  1. YCharts. “Financial Data.”

  2. NRG Energy Inc. "NRG Energy, Inc. Reports First Quarter 2022 Results."

  3. PG&E Corp. "Dates Set for Pacific Gas and Electric Company Quarterly Preferred Stock Dividend."

  4. DTE Energy Co. "DTE Energy’s Blue Water Energy Center begins commercial operation."

  5. Vistra Corp. "Vistra's Emerald Grove Solar Facility is Now Online, Providing Texas with Emission-Free Power."

  6. Consolidated Edison Inc. "Form 10-Q for the quarterly period ended March 31, 2022," Page 7.

  7. Consolidated Edison Inc. "Con Edison Reports 2022 First Quarter Earnings," Pages 1, 5.

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