D - Why Utility Stocks Like Duke Energy Got Zapped Today
2023-10-02 18:20:45 ET
Monday wasn't a good day to have utilities in a stock portfolio. Many of these titles took it on the chin, following a notable pop in the value of certain safe-haven investments.
Among the sector's decliners on the day were Duke Energy (NYSE: DUK) , Dominion Energy (NYSE: D) , and NextEra Energy (NYSE: NEE) . The trio's share prices fell by 3.2%, 5.3%, and a steep 9%, respectively. All did worse than the bellwether S&P 500 index, which essentially ended the day flat.
It's relatively straightforward to predict a great many financial metrics for utilities, since they are all subject to rate caps and tend to have a customer base that grows slowly, at best. As a result, their fundamentals aren't very volatile; it's safe to say almost no one buys a utility stock in the hope that a company will suddenly enjoy a windfall profit.
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Why Utility Stocks Like Duke Energy Got Zapped Today