XLU - DTE Energy: A Much-Improved Growth Story With A Better Valuation (Rating Upgrade)
2024-04-16 16:04:13 ET
Summary
- The bond market selloff continues, with the rate on the US 10-year Treasury note rising to near 4.7%.
- Higher borrowing costs is bad news for rate-sensitive Utilities sector stocks, but DTE's EPS growth trajectory appears solid.
- I highlight key price levels to watch ahead of Q1 results due out later this month.
The bond market selloff continues. So far this year, the rate on the US 10-year Treasury note has jumped from around 4% to near 4.7%. With an RSI reading now near 30, the iShares US Treasury Bond ETF (GOVT) has the weakest momentum since last November. That spells bad news for rate-sensitive Utilities sector stocks. With financial leverage and significant debt burdens common across the Multi-Utilities industry, loftier borrowing costs is a fundamentally bearish factor. But is enough bad news priced into shares of DTE Energy (DTE)? ...
DTE Energy: A Much-Improved Growth Story With A Better Valuation (Rating Upgrade)