2024-05-05 21:00:17 ET
Summary
- The utilities sector (represented by XLU) has been outperforming in 2024.
- XLU is expected to benefit from a moderate risk-off environment, leading to sector rotation.
- Steady earnings growth, rising distributions, an attractive valuation and the prospect of lower rates are all potential tailwinds. The chart has a bullish pattern and a target price of $77.
The corrective phase in the stock market may have started in Q2, but there were red flags beforehand in Q1. Yields were climbing, the rally was slowing, and sector performance was reflecting a more risk-off environment....
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A Positive Environment For XLU