LNT - Time to look at 2021's worst group? Utilites gets an endorsement: Sector Watch
Gargolas/iStock via Getty Images The Utilities (XLU) sector gets a bad rap even when it's the best-performing S&P (SPY) group, as that usually occurs on down market days. But its poor performance has Wall Street eyeing attractive valuations. XLU had another ho-hum move this past week, up X%, compared with the broader market, up X%. Year to date it and in the last 52 weeks, it been the worst S&P sector, up just X% and X% respectively. But Citi has upgraded Utilities to Market Perform from Underperform, saying valuation and EPS revision momentum are "quite attractive." "Taking the Utilities sector up from Underweight after more than 2,200 basis points of underperformance over the past year (and 1,150bps ytd) does not look that heroic, especially with an attractive valuation," Citi Chief U.S. Equity Strategist Tobias Levkovich writes in a note. "This group is one of the few not demonstrating peak-like earnings
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Time to look at 2021's worst group? Utilites gets an endorsement: Sector Watch