2024-04-02 12:50:23 ET
Summary
- The Utilities sector performed poorly in Q1 but has seen a rebound in the past month, helped by gains in NextEra Energy (NEE).
- NextEra, the biggest component of the Utilities sector ETF, has a modest valuation and I reiterate a buy rating.
- NextEra Energy has strong earnings and dividend yield forecasts, though shares are not far from key resistance levels.
The rate-sensitive Utilities sector was among the bottom S&P 500 sector performers in Q1, but there was a snapback over the back half of the period. The group was up just 3.7% over the first three months of 2024, but on a 1-month basis, XLU is actually the third-best performing sector....
Read the full article on Seeking Alpha
For further details see:
NextEra: Bigger Dividend, Healthy Momentum, Bode Well (A.I. Too)