Latest news with #UtilitiesSelectSectorSPDRFund
CNBC
6 days ago
- Business
- CNBC
Utilities are surging in 2025. Wall Street likes these dividend-paying stocks
Utilities are emerging as a hot play in 2025 as investors take notice of their role in powering the artificial intelligence movement – and many of the names also happen to pay attractive dividends. As the broader S & P 500 retreated on Tuesday, the Utilities Select Sector SPDR Fund (XLU) touched a fresh record. Utilities are the second-best performing sector in the S & P 500 in 2025, up more than 14% and outperforming tech's roughly 13% advance. The outperformance is greater still including utilities' 2.8% dividend yield. XLU 5D mountain The Utilities Select Sector SPDR Fund (XLU) in the past five days. "For the power sector we expect significant tailwinds in the second half of 2025," said Bank of America analyst Ross Fowler in a late June report, pointing to the likelihood of continued growth in electricity demand. "Despite significant positive returns so far this year, we continue to believe the power stocks have data center related catalysts across the second half." In addition, dividend-paying stocks are looking more favorable for investors who are on the prowl for income, anticipating the day when the yield on risk-free Treasurys declines. To that end, CNBC Pro used FactSet data to screen for names within the XLU ETF that have buy or overweight ratings from at least 51% of the analysts covering them, and a dividend yield of at least 1.5%. PPL Corp. turned up on CNBC's screen. Once known as Pennsylvania Power & Light, the utility's shares are up 10% in 2025, and the stock pays a current dividend yield of about 3%. The provider of power and natural gas in Pennsylvania, Kentucky, Rhode Island and Virginia reported adjusted earnings of 32 cents on revenue of $2.03 billion in the second quarter against consensus estimates of 39 cents a share and $1.81 billion in revenue. Nearly 59% of the analysts covering the PPL rate it buy, according to FactSet. Jefferies analyst Paul Zimbardo stuck with the stock, reiterating a "buy" rating and lifting his price target on Monday by $2, to $42, suggesting 16% upside from Monday's close. "PPL is one of our top utility ideas, offering under-appreciated regulated generation data center exposure with premium core utilities overall," he said. "PPL has visibility to 8% EPS growth with conservative assumptions while preserving an above-average balance sheet." The icing on the cake is a recently announced joint venture between PPL and Blackstone Infrastructure to build natural gas generation to power data centers. "It is clear that this is an early stage partnership, but there is real option value here," Zimbardo said. NiSource also turned up on the screen. More than seven out of 10 analysts covering the Indiana-based utility recommend it as a buy or overweight, according to FactSet. Shares are up 16% in 2025, and the stock pays a current dividend in 2.6%. Fowler of Bank of America reiterated a buy rating on NiSource in late June following meetings with top brass. "NI is fielding active interest from hyperscalers seeking sites in Northern Indiana, where fiber and transmission access are gating factors," the analyst wrote. "A large fiber network from Chicago through northwest Indiana enhances competitiveness." "Paired with a solid dividend and visible [free cash flow] growth, we view NI as a defensive name with embedded optionality from growth upside," Fowler said. Finally, Xcel Energy turned up on our screen. The Minneapolis-based stock has a following, with 65% of analysts rating it a buy or overweight, according to FactSet. Shares are up 9% in 2025, and the stock pays a current dividend yield of about 3.1%. Anthony Crowdell of Mizuho last week stuck with his "outperform" rating after Xcel posted second-quarter results that topped the Street's estimates. "The company now has visibility into $15B+ of additional [capital expenditures] not included in its current base plan," he said. "This includes generation capex from resource plans across its service areas, transmission and data center demand." With the increase in capital spending built into the rate base, "the company reaffirmed its long-term EPS growth rate of 6%-8% and continue to expect to be in the upper half of the range," Crowdell added. — CNBC's Michael Bloom contributed reporting.
Yahoo
10-07-2025
- Business
- Yahoo
Public Service Enterprise's Quarterly Earnings Preview: What You Need to Know
Newark, New Jersey-based Public Service Enterprise Group Incorporated (PEG) operates in electric and gas utility and nuclear generation businesses in the United States. With a market cap of $40.7 billion, the company operates through PSE&G and PSEG Power segments. The company is set to unveil its second-quarter results on Tuesday, July 29. Ahead of the event, analysts expect PEG to report non-GAAP earnings of $0.72 per share, up 14.3% from the profit of $0.63 per share reported in the year-ago quarter. Additionally, the company has surpassed the Street's bottom-line projections in one of the past four quarters, while missing on three occasions. This Underdog AI Stock Just Got a New Street-High Price Target 'The Most Patriotic Thing You Can Do Is Not Pay the IRS' Says Grant Cardone as OBBBA Signed into Law — Here's How Much You'll Save Texas Just Passed Quantum Computing Legislation. How Should You Play IONQ Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the current year, its earnings are expected to be $4.01 per share, up 9% from $3.68 per share reported in the year-ago quarter. Moreover, in fiscal 2026, its earnings are expected to rise 7.5% year-over-year to $4.31 per share. PEG stock has grown 7.9% over the past 52 weeks, underperforming the Utilities Select Sector SPDR Fund's (XLU) 19% surge and the S&P 500 Index's ($SPX) 12.3% uptick during the same time frame. PEG's stock dropped 2.1% following the release of its Q1 results on Apr. 30. The company's revenue increased 16.7% year-over-year to $3.2 billion, exceeding the Street's estimates, mainly driven by increased energy consumption due to colder weather in January and February. However, its adjusted EPS for the quarter came in at $1.43 and failed to touch the consensus estimates by 2.1%. The consensus opinion on PEG is moderately optimistic, with a 'Moderate Buy' rating overall. Of the 18 analysts covering the stock, opinions include eight 'Strong Buys' and 10 'Holds.' PEG's average analyst price target of $88.57 indicates a potential upside of 8.6% from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
PG&E Corporation's Quarterly Earnings Preview: What You Need to Know
PG&E Corporation (PCG), headquartered in Oakland, California, sells and delivers electricity and natural gas to its customers. Valued at $37.2 billion by market cap, PCG is one of the largest utility companies in the U.S. that provides electricity and natural gas distribution, electricity generation, procurement, and transmission, and natural gas procurement, transportation, and storage. The leading gas and electricity provider is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Jul. 31. Ahead of the event, analysts expect PCG to report a profit of $0.41 per share on a diluted basis, up 32.3% from $0.31 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion. Nat-Gas Prices Recover as Hotter Temps Forecast for the Central US Energy Demand Optimism and Houthi Rebel Attacks on Red Sea Shipping Boost Crude Prices Crude Prices Climb on Energy Demand Optimism and Middle East Tensions Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect PCG to report EPS of $1.50, up 10.3% from $1.36 in fiscal 2024. Its EPS is expected to rise 8.7% year over year to $1.63 in fiscal 2026. PCG stock has considerably underperformed the S&P 500 Index's ($SPX) 11.9% gains over the past 52 weeks, with shares down 20.8% during this period. Similarly, it substantially underperformed the Utilities Select Sector SPDR Fund's (XLU) 19.6% gains over the same time frame. On Apr. 24, PCG shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.33 fell short of Wall Street expectations of $0.35. The company's revenue was $6 billion, falling short of Wall Street forecasts of $6.1 billion. PCG expects full-year adjusted EPS in the range of $1.48 to $1.52. Analysts' consensus opinion on PCG stock is moderately bullish, with a 'Moderate Buy' rating overall. Out of 17 analysts covering the stock, 11 advise a 'Strong Buy' rating, five give a 'Hold,' and one indicates a 'Strong Sell.' PCG's average analyst price target is $20.70, indicating an ambitious potential upside of 51.8% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
08-07-2025
- Business
- Yahoo
PG&E Corporation's Quarterly Earnings Preview: What You Need to Know
PG&E Corporation (PCG), headquartered in Oakland, California, sells and delivers electricity and natural gas to its customers. Valued at $37.2 billion by market cap, PCG is one of the largest utility companies in the U.S. that provides electricity and natural gas distribution, electricity generation, procurement, and transmission, and natural gas procurement, transportation, and storage. The leading gas and electricity provider is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Jul. 31. Ahead of the event, analysts expect PCG to report a profit of $0.41 per share on a diluted basis, up 32.3% from $0.31 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion. Nat-Gas Prices Recover as Hotter Temps Forecast for the Central US Energy Demand Optimism and Houthi Rebel Attacks on Red Sea Shipping Boost Crude Prices Crude Prices Climb on Energy Demand Optimism and Middle East Tensions Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect PCG to report EPS of $1.50, up 10.3% from $1.36 in fiscal 2024. Its EPS is expected to rise 8.7% year over year to $1.63 in fiscal 2026. PCG stock has considerably underperformed the S&P 500 Index's ($SPX) 11.9% gains over the past 52 weeks, with shares down 20.8% during this period. Similarly, it substantially underperformed the Utilities Select Sector SPDR Fund's (XLU) 19.6% gains over the same time frame. On Apr. 24, PCG shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.33 fell short of Wall Street expectations of $0.35. The company's revenue was $6 billion, falling short of Wall Street forecasts of $6.1 billion. PCG expects full-year adjusted EPS in the range of $1.48 to $1.52. Analysts' consensus opinion on PCG stock is moderately bullish, with a 'Moderate Buy' rating overall. Out of 17 analysts covering the stock, 11 advise a 'Strong Buy' rating, five give a 'Hold,' and one indicates a 'Strong Sell.' PCG's average analyst price target is $20.70, indicating an ambitious potential upside of 51.8% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
When Stocks Slide, These Are the Sectors That Do Best
Utilities are a favorite safe haven during turbulent markets. The consumer staples sector also usually performs well during market sell-offs. The healthcare and energy sectors are often resilient, but not always. 10 stocks we like better than S&P 500 Index › Is the worst over for the stock market? Maybe. However, significant uncertainty remains -- even with the U.S. Court of International Trade ordering a halt to many of President Donald Trump's tariffs. (The administration has appealed.) The stock market may sink again. Billionaire hedge fund manager Steve Cohen even stated recently that stocks could decline nearly as much as they did in April. Investors can be prepared if he's right. When stocks slide, these are the sectors that do best. Investors have long viewed the utilities sector as a safe haven during turbulent markets. And for good reason. Utility stocks can typically count on steady revenue and cash flow regardless of what's happening in the stock market or the economy. Many of them enjoy monopolies in their areas of service. Just look back at 2022. The S&P 500 (SNPINDEX: ^GSPC) plunged roughly 19.4%, marking its worst performance since the major meltdown in 2008. Utilities stocks, though, delivered a total return of 1.57% including dividends. That normally wouldn't be anything to get excited about, but it's a lot better than a huge loss for the year. The utilities sector is also holding up quite well during the current market volatility. The Utilities Select Sector SPDR Fund (NYSEMKT: XLU), which owns 31 utility stocks, has trounced the S&P 500 while remaining in positive territory most of the year so far. I think this exchange-traded fund (ETF) is a great way to invest in the utilities sector. However, there are also plenty of attractive individual utility stocks you can buy. Dominion Energy (NYSE: D) is among my favorite utility safe havens. The company has solid growth prospects, with its home state of Virginia a hotspot for data centers. Dominion also pays a juicy dividend that yields 4.76%. The consumer staples sector includes companies that sell essential goods and services that consumers buy during good and bad economic periods. Think food, beverages, household supplies, and personal care products. While consumer staples are must-haves for consumers, consumer staples stocks can be must-haves for investors when the market declines significantly. When the dot-com bubble burst in 2000 through 2002, consumer staples stocks skyrocketed while the S&P 500 plunged. It was a similar story during the financial crisis of 2007 through 2009. The consumer staples sector also outperformed all other sectors during the initial stock market sell-off caused by COVID-19 lockdowns. How have consumer staples stocks performed with the tariff-fueled market volatility in 2025? Pretty well. The Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP), which owns 38 consumer staples stocks, is handily beating the S&P 500. Investors seeking to gain exposure to the consumer staples sector might want to consider buying this ETF. Alternatively, you could buy individual consumer staples stocks. The Coca-Cola Company (NYSE: KO) looks like a solid pick, in my view. Coca-Cola is a longtime winner and a Dividend King. It's also one of Warren Buffett's favorite stocks. Like consumer staples, healthcare products and services, at least in many cases, are must-haves for people regardless of what's going on with the economy or the stock market. As a result, the healthcare sector tends to be resilient during crises. Healthcare stocks on aggregate delivered positive returns during the dot-com bubble, the global financial crisis that led to the Great Recession, and the early innings of the COVID-19 pandemic. However, the healthcare sector has underperformed the S&P 500 in 2025, with the Health Care Select Sector SPDR Fund (NYSEMKT: XLV) down around 4%. What's behind this decline? The Trump administration's tariffs could hurt some medical technology companies. Drugmakers are worried about the prospects of tariffs on pharmaceutical imports and most-favored-nation drug pricing. Many healthcare stocks have still beaten the market, though. I think Vertex Pharmaceuticals (NASDAQ: VRTX) is one of the strongest of the group. This big biotech company sells the only therapies that treat the underlying cause of cystic fibrosis. Vertex also has a recently approved non-opioid pain drug that should be a huge commercial success. The energy sector is another sector that sometimes performs well during market declines, but not always. For example, energy was the only sector delivering a positive return during 2022 (excluding dividends). It didn't just eke out a small gain either: Energy stocks soared 59%. However, energy is one of the worst-performing S&P 500 sectors so far this year. Why? Declining oil prices and worries about the impact of tariffs on the global economy are two main culprits. You can still find winners in the energy sector, though. Enbridge (NYSE: ENB) is one of my favorites. Shares of the midstream energy leader are up around 8% year to date. It also offers a juicy forward dividend yield of 5.91%. Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Keith Speights has positions in Dominion Energy, Enbridge, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Enbridge and Vertex Pharmaceuticals. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. When Stocks Slide, These Are the Sectors That Do Best was originally published by The Motley Fool
