2024-05-24 14:51:47 ET
Summary
- The Utilities sector and Communication Services lead the S&P 500 in 2024 as AI permeates new corners of the market.
- The XLU ETF now trades at a significantly higher multiple than it did at the end of last year, nearing 18x forward operating earnings estimates.
- I have a hold rating on The Southern Company as it sports a high valuation with just modest growth prospects.
- With shares pausing after a strong thrust, I highlight key levels to monitor on the chart.
The Utilities sector, along with Communication Services, leads the S&P 500 in 2024. While Information Technology has been on fire since the market’s low in April, the artificial intelligence ((AI)) groundswell has landed on the shores of the once-lowly Utilities niche....
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The Southern Company: A Premium Valuation With Lukewarm Growth