XLU - Utilities Dashboard - May Edition
This article series provides a monthly dashboard of industries classified by sectors. It compares valuation and quality factors relative to their historical averages in each industry.
Executive summary
Combining our valuation and profitability metrics, the most attractive industry in utilities is independent power producers/traders. Other industries are significantly overpriced and profitability doesn’t justify it.
Since last month:
- P/E has deteriorated in all industries of the sector.
- P/S has improved in water, electric and multi-utilities, and deteriorated in gas and power producers/traders.
- ROE has deteriorated in gas and multi-utilities.
- The Utilities Select Sector SPDR ETF (