2024-06-03 13:48:36 ET
Summary
- Utilities have become attractive investments due to cheaper valuations and improved fundamental growth.
- The utilities sector has underperformed recently, but there is potential for higher returns in the future.
- Certain utilities stocks, such as Pinnacle West, Duke Energy, and Dominion Energy, are well-positioned to capture growth in electricity demand.
In the last few years, there have been 2 key changes to the investment prospects for utilities:
- Valuation has gotten cheaper
- Fundamental growth has improved.
With higher growth than normal and reasonable valuation, I think utilities have become attractive investments. While the sector as a whole looks opportunistic, certain individual stocks within are better positioned than others....
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For further details see:
XLU: Utilities Are Attractive, Some More Than Others