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Utilities

Utilities could substantially outperform this yearUtilities traditionally are a recession safe haven, although in March they fell along with the broader market. There is reason, however, to think they will outperform going forward. According to an analyst poll conducted by FactSet, analysts expect utilities to be the sector least affected by the pandemic, with 2020 earnings down only 1.6% from pre-pandemic forecasts. The next strongest sector, information technology, is expected to take a 6.5% hit. Of the S&P 500 companies that have confirmed their previous 2020 guidance, 53% are in the utilities sector. Here's the link to the FactSet poll: www.factset.com Although earnings forecasts for the sector are down only 1.6%, utilities stock prices are down about 16% from their pre-pandemic peak. That suggests that utilities are now trading at a significant discount. Additionally, RYU has a nearly 3% dividend yield and has been a growth sector due to the widespread adoption of renewable energy technologies by both corporations and governments. In 2019, the utilities sector roughly doubled its earnings over the previous year. In terms of technicals, utilities recently made a bullish MACD cross on the weekly chart. There's a little bearish divergence on the histogram, and the daily MACD is below the signal line, which makes some short-term price weakness a real possibility. For the longer term, however, the technical setup looks good. RYU is sitting atop a block of support on the volume profile, whereas to the upside there's much less volume profile resistance. Note that RYU is not optionable. If you're like me and you'd like to buy some long-term (2022) option calls, you could look at the XLU S&P 500 utilities fund. I prefer equal-weight funds because they tend to outperform long-term, but in addition to being optionable, XLU has a better dividend yield and a better expense ratio than RYU.
AMEX:RSPULong
by ChristopherCarrollSmith
Azure Power Global: divergence confirmed, downtrend is startingwww.vfinvestment.site The price crossed down the 100-day moving average very rapidly, the divergence with the MACD was validated by two very strongly bearish candles, MACD looks pessimistic and RSI indicates no oversold condition. I think that is more than enough to assume the price will revert down to the historical support/resistance of 11.80, if not break through it. If you really want to go certain, you can wait for the price to cross the 200-day moving average, but by that time you will probably lose some potential profit. VF Investment can not be held responsible for any financial damages suffered from following our well-funded but personal opinions and trading ideas. Please, maintain proper position sizing and risk management!
AShort
by vf_investment
$EBR can fall in the next daysContextual immersion trading strategy idea. Centrais Eletricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The demand for shares of the company looks lower than the supply. This and other conditions can cause a fall in the share price in the next days. So I opened a short position from $3,91; stop-loss — $4,2. Information about take-profits will be later. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas. Thanks for being with me!
NYSE:EBRShort
by KozakHlib
Water is 2020's winner so farThe 3 leaders YTD have been (in order): Utilities, Healthcare, Staples; which happen to be the 3 most defensive sectors, who tend to outperform during a recession... Inside the utilities sector, the Water industry is the leader. CWCO has a beautiful looking chart, setting a strong support after making a double-bottom, which immediately after, made a bullish engulfing candle. It is interesting to note, that the volume on this 2-day event; was almost identical. Meaning the amount of buyers was larger than the seller side.
NASDAQ:CWCOLong
by dorfmanmaster
1
CNRG is the best-performing clean power ETF over its lifetimeI'm highly interested in energy right now, but in the long term I'm just really worried about the oil and gas industry. Thanks to Swanson's Law, the price of solar panels continues to fall. Battery technology is also rapidly getting better, and we seem to be witnessing the mainstreaming of electric cars. According to FactSet, the "Independent Power and Renewable Electricity Producers" segment grew its earnings by an astounding 138% last year, making it the fastest-growing segment of the market. That's why I decided it's time to get in. In planning my entry, I compared nine clean energy ETFs to see which one offers the best performance over time. The second-best performer was QCLN, a passively managed FirstTrust Green Energy ETF. The reason this fund has done so well is its high exposure to Tesla, which comprises 10% of its holdings. That worries me, because Tesla's current valuation is extremely high at a forward P/E of over 70, and QCLN's forward P/E is accordingly also pretty high at over 24. It also has a pretty bad price-to-cash-flow ratio of about 13, which makes me worry about the financial health of the companies in the fund. So I was glad to find an even better performing ETF that's at a more attractive valuation: CNRG. CNRG, an SPDR "enhanced strategy" fund, is only about a year and a quarter old, so there isn't a ton of history to go on. During that time, however, it has handily beaten QCLN. Also, the fund's valuation is better by pretty much every metric, with a P/E closer to 19 and a price-to-cash-flow of about 10. That's still high, but it's more defensible than the QCLN numbers. Both funds pay about 1.2% in dividends. CNRG's largest holding is micro-cap fuel cell maker FCEL, which has rallied since a huge earnings beat last quarter. Exposure to FCEL could make this fund a lot more volatile than QCLN. Here's CNRG compared to QCLN: And here's CNRG vs. the S&P 500:
AMEX:CNRGLong
by ChristopherCarrollSmith
Pampa Energia share buybacks ought to be good for the pricePampa Energia (an Argentinian electrical utility and petrochemical producer) is a tough company to gauge, because it's a foreign company and its earnings are unpredictable. It appears very inexpensive with a P/E under 1.5, but analysts expect losses for the next two quarters. Forward P/E is 4.5. The company has a merger in process with PEFM, to be completed in July. Unfortunately I can't find much analysis of the merger. Oddly, this stock trades a little differently on Argentina's stock exchange than it does on the New York stock exchange. Here's the chart on the Argentinian exchange, BYMA: It looks like American traders reacted much more to the merger between Pampa and Petrobras back in 2016. Excluding the anomalous period from 2016 to 2018, the two charts look more similar. However, Pampa is still down more since its last earnings on the US than on the Brazilian exchange. Given the lack of good information available on this company in English, I won't be buying any. But just taking a crack at a prediction for curiosity's sake, I'd guess the stock will start to move higher. Here are some things that should help. First, oil prices are in an uptrend. Second, analyst ratings on the stock have been rising, and it's now got an 8.7/10 summary score from Thompson Reuters. Third, Pampa has been buying back shares at the current price. Yesterday it bought about a million dollars' worth. And fourth, Pampa has support around $15. This is a longer term play; look for a test of the trend line sometime in the next eight months.
NYSE:PAMLong
by ChristopherCarrollSmith
Brookfield Renewables: Good Buying Opportunity Off the DipMany utility stocks across the TSX and NYSE underwent a falling descending triangle - in fact, many of them seemingly corrected about 5% (ironically) on the same day and around the time (near when phase 1 progress was announced not long ago). Brookfield Renewable Partners (BEP) is one of the finest utility stocks as its led by Bruce Flatt who is regarded as one of the top real-estate investors in Canada of all time and he will never have any issue raising money should the company ever need-be for acquisitions. Acquisitions are king in the renewable space and this is a key pro for the company. Utilities have outperformed a little too much in 2019 as an entire sector in my opinion as a result of the uncertainty around global growth, and as a result I see the first half of 2020 providing somewhat muted gains for the sector as a whole, however, as we prove through 2020 midway, I expect economic data to wane once again and this will lift the sector up . Many utility stocks continue to trade at around 35-50 P/Es which is extremely high for the sector which was just regarded as passive income, not "wealth appreciation". Nonetheless, for those looking for a decent entry point in a top renewable utility sector (which will be the future), this is the time to monitor closely and buy a position in the stock. As always, never buy stocks all at once in one lot as tempting as it might be. - zSplit
TSX:BEP.UNLong
by PaulDeep19131
TC Energy: High Dividend CAGR; Long-Term WinnerFor those that follow my ideas, one of my top performing sectors of 2020 is the Canadian Energy sector in which will be set to rebound relatively strongly after being decimated for the past while. Specifically, I believe the Canadian Energy sector will quite strongly outperform the US Energy sector from a shift in policy, increase in cap-x and more money entering the sector and people in which will look for alternatives to soaring US valuations and "good deals". TC Energy is one of the few stocks in the entire stock market that has grown quite consistently over the past 10 years without any major "epic dips", including the compound annual dividend rate (CAGR). Unlike other stocks in the energy sector that plummeted in the recession of 2009 and the contraction of 2016, TC energy has maintained quite consistent growth over-time and bounced off lows quite quickly. Why? The answer is in their diversified portfolio. This is a great pick to 'buy on dips' and hold for a long-time. In 2020 I am looking for continued dividend growth and a TP by 2021 around the 85-90.00 range. - zSplit My 2020 Top Sector Pick List - Canadian Energy (TRP, CNQ, SU, ENB) - US Technology (Semis/Software) - Select Cannabis Stocks (IIPR) - Precious Metals (Gold/Silver/Platinum) - Utilities (Renewable Energy)
TSX:TRP
by PaulDeep19131
Brookfield Renewables: Top Investment over the next DecadeThere's no question about it that one sector that will be extraordinary over the next half decade, decade and many decades after is renewable energy. The world is certainly transitioning - or attempting to transition - to fuel cells, wind, solar and derivatives in order to create a more "environmentally friendly earth". Brookfield has one of the best real-estate investors of all time (Bruce Flatt) who is one of the top Canadian investors and notoriously known for exceptional investment philosophies. This company focuses essentially on acquiring, selling and occupying existing or developing renewable energy platforms around the world. Bruce is also a champion at raising money and should he feel the need to do so, many of the wealthiest people will be quick on board. Renewables will be a sector that will be set for parabolic gains for the next several years and you certainly want to be in them in a big way, even moreso than traditional utility stocks. Furthermore, if you do your research there are several large firms and insiders that have been stockpiling shares in this stock in the tens and hundreds of thousands of shares over the last few weeks and few months. As a result, this stock could very well do what NextEra Energy has done where it turns parabolic in the next 2 or 3 years and quadruples in numerical stock value. For those who look at this stock and are frightened by the P/E, you must know that Brookfield has separated their assets into 4 or 5 different sub-groups, therefore in this case, the high P/E ratio is nothing to be scared of as it is one large asset managed company but in sectors so investors can choose what they want. Technically, the stock posts higher momentum short squeezes by the day and has broken out tremendously out of a large consolidation path. A sector that will go parabolic in the next decade and a yield over 4.4%, what more can you ask for? - zSplit
TSX:BEP.UNLong
by PaulDeep19131
SSE - Electrifying potential gainsBuy SSE (SSE.L) SSE plc is engaged in producing, distributing and supplying electricity and gas, as well as other energy-related services to homes and businesses in Great Britain and Ireland. Market Cap: £13.35Billion SSE broke above resistance on a move above 1237p back in October. The shares have since corrected to retest the new support and now appear to be attracting fresh buying interest. The close above the 10EMA and the completion of a bullish flag suggests that more upside is likely in the short term. Stop: 1223p Target 1: 1330p Target 2: 1477p Target 3: 1625p Interested in UK Stocks? Join our free Telegram channel for up to date analysis on the best main market opportunities in the UK right now - t.me
LSE:SSELong
by Investamate
United Utilities - Something in the water?Buy United Utilities (UU.L) United Utilities Group plc, the United Kingdom's largest listed water company, was founded in 1995 as a result of the merger of North West Water and NORWEB. The group manages the regulated water and wastewater network in North West England, which includes Cumbria, Cheshire, Greater Manchester, Lancashire and Merseyside, which have a combined population of nearly seven million. Market Cap: £5.8Billion United Utilities has broken out of a bearish channel with an impulsive move higher. The correction lower in recent days has been limited and buyers appear to be emerging once again. A flag formation may be taking shape which would suggest a continuation higher over the short term. The ultimate target is for a move to 1065p, which is a previous high dating back to May 2017. It’s also a nice one for income investors with a dividend yield of 4.74%. Stop: 816p Target 1: 940p Target 2: 1000p Target 3: 1065p Interested in UK Stocks? Join our free Telegram channel for up to date analysis on the best main market opportunities in the UK right now - t.me
LSE:UU.Long
by Investamate
Utilities: A Sector that will Outperform Over the Next 5+ YearsOver the past 15 years utilities has been one of the superior major sectors in the stock market, with the past year only representing a continued surge in growth. With interest rates poised to approach 0 in Canada and the USA within the next 8-12 months, this will allow for the acquisition and ultimately, the growth of many utility projects. While no utility stock will ever offer the 100% or 200% returns you can see in small caps in say, the tech sector, utilities offers an excellent preservation of capital with typically 5-7% dividend yields and therefore gives investors excellent appreciation and free cash-flow in a TFSA or RSP (401k). With no major sector ever "immune" to a recession or global slowdown, looking for high-quality and high-cash flow stocks are your best bet for cash safety. The utility sector also offers some of the best dividend yields overtime and contrary to the energy (oil) sector which has an unknown future, there are several strong utility stocks poised to capitalized on the renewables. While many are starting to see the impacts, the next recession will decimate high-speculative and high-debt stocks (i.e. many IPOs have fallen 50-100% in the past 3 months; many other examples can be found as well). RNW is one of my favourite stocks because it is roughly 35-40% undervalued and could jump to 23-24.00 within the next 12 months. Strong management, diversification amongst projects and high cash-flow are some of the stocks strong suits. Brookefield Renewable Partners (BEP.UN) is also another strong utility stock.
RLong
by PaulDeep19131
Breakout on Earnings 10/31Fundamental Catalysts remain strong If numbers are good, look for breakout to 35.75, and then 37.25 areas Take profit anywere above 37.50 before EoY These stocks have the highest dividend yields in the hot real-estate sector, FROM MARKET WATCH With the Federal Reserve cutting short-term rates twice recently and reversing its decision to shrink its balance sheet earlier this year, along with continued stimulative central bank policies in other developed economies, there’s no reason not to expect the big money flow to continue, along with plenty of support for shares of real-estate investment trusts. Company Ticker Dividend yield FFO Yield ‘Headroom' Total return - 12 months though Oct. 22 Macerich Co. MAC, -2.76% 10.26% 12.86% 2.60% -37% Iron Mountain Inc. IRM, -0.47% 7.19% 6.27% -0.92% 15% Company Ticker Share 'buy' ratings Share 'hold' ratings Share 'sell' ratings Closing price - Oct. 22 Consensus price target Implied 12-month upside potential Macerich Co. MAC, -2.76% 17% 72% 11% $29.23 $35.15 20% Iron Mountain Inc. IRM, -0.45% 46% 36% 18% $33.97 $35.27 4% Here’s how the sectors and the broad indexes have performed during 2019, for 12 months and for longer periods: S&P 500 Sector Total return - 2019 through Oct. 1 Total return - 12 months Total return - 3 years Total return - 5 years Total return - 10 years Total return - 15 years Total return - 20 years Information Technology 30.3% 7.1% 82% 133% 395% 461% 187% Real Estate 28.4% 24.5% 33% 71% 310% 284% N/A Utilities 25.0% 27.1% 46% 82% 230% 351% 357%
NYSE:IRMLong
by noam_chom