Utility stocks are normally buttoned up, conservative types that don’t move around much. They cater to the income-focused investor who prefers smooth steadiness instead of rip-roaring capital appreciation. Sure, a few percentage points to the upside is always great. But it’s not the main focus.
Yet, thanks to a recent comedown in the crowded technology momentum trade amid a big rotation away from cyclicals and into defensives, utility stocks are ripping higher. Many are pushing to multimonth highs with a trajectory normally reserved for speculative biotech stocks.
Here’s a look at seven that are blitzing to the upside and worth a look for new money:
Utility Stocks to Watch: AES Corp (AES)
AES Corp (NYSE:AES) shares are breaking to new highs, returning to levels not seen since 2008 and rising about 50% of off the lows hit in early February. This is despite a downgrade from analysts at Bank of America Merrill Lynch on July 2. Shares carry a yield of 3.8%.
The company reported results on Tuesday before the bell. Earnings of 25 cents per share missed expectations for 28 cents per share. Revenues of $2.54 billion also missed expectations of $3.1 billion.
Utility Stocks to Watch: Nisource (NI)
NiSource (NYSE:NI) shares are perking up and moving past their early July highs, challenging the highs set back in November and representing a rise of more than 22% from the lows set in February. Shares carry a near-3% dividend yield. Management released a private share placement earlier this year, and Goldman added the company to its conviction buy list back in May.
The company next reports on Oct. 31 before the bell. Analysts are looking for earnings of six cents per share on revenues of $954.1 million.
When the company last reported on Aug. 1, earnings of seven cents per share missed estimates by two cents on $996 million in revenues.
Utility Stocks to Watch: NRG Energy (NRG)
NRG Energy (NYSE:NRG) shares are rallying higher, moving up and out of a three-month consolidation range as well as its upper Bollinger Band. This is the latest in a pattern of buyable dips going back to a low of less than $9 set back in late 2015. Gains have been impressive, with shares more than doubling off of the lows set last summer.
The company will next report results on Nov. 1 before the bell. Analysts are looking for earnings of $1.51 per share on revenues of $3.9 billion. When the company last reported on Aug. 2, earnings of 31 cents missed estimates by 34 cents on a 8.2% rise in revenues.
Utility Stocks to Watch: Scana (SCG)
Scana (NYSE:SCG) shares continue to recover from a rather steep fall from grace, with shares losing nearly half their value from the highs set in late 2016 to the lows set in May, amid an earnings drag from tax changes and rate-reduction credits forced by South Carolina lawmakers. Shares were recently upgraded to buy by analysts at Mizuho.
The company will next report results on Oct. 25 before the bell. Analysts are looking for earnings of 95 cents per share on revenues of $1 billion.
When the company last reported on Aug. 2, earnings of six cents missed estimates by 46 cents on a 15.8% decline in revenues.
Utility Stocks to Watch: Southern Co (SO)
Southern Co (NYSE:SO) shares are rising to test overhead resistance from a three-year topping pattern near $50. The stock has gained roughly 20% from the lows seen earlier this year. Shares carry a near-5% dividend yield and were recently initiated with a “buy” rating at Barclays.
The company will next report results on Aug. 8 before the bell. Analysts are looking for earnings of 69 cents per share on revenues of $5.3 billion. When the company last reported on May 2, earnings of 88 cents per share beat estimates by four cents on a 10.4% rise in revenues.
Utility Stocks to Watch: Eversource Energy (ES)
Eversource Energy (NYSE:ES) shares are breaking above seven-month resistance near the $60-$61 level to return to highs not seen since January. The company recently enjoyed an upgrade from analysts at Bank of America Merrill Lynch was well as an upgrade from Credit Suisse analysts back in July. Shares are carrying a 3.3% dividend yield.
The company will next report results on Nov. 1 after the close. Analysts are looking for earnings of 88 cents per share on revenues of $2 billion.
When the company last reported on July 31, earnings of 76 cents per share beat estimates by a penny on a 5.2% rise in revenues.
Utility Stocks to Watch: DTE Energy (DTE)
DTE Energy (NYSE:DTE) shares are rising above their late-July highs, pushing to levels not seen since December and capping a rise of 17% from the lows seen in June. Investors are cheering solid results, strong forward guidance and a recent initiation with a “buy” rating from analysts at Scotia Howard Weil. Shares carry a 3.2% dividend yield.
The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $1.58 per share on revenues of $2.8 billion. When the company last reported on July 25, earnings of $1.36 per share beat estimates by 23 cents on revenuers of $2.6 billion.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
