The recent spate of equity issuance is yet another sign of frothy valuations in the utility sector, but these moves set the stage for future growth. Investors should bide their time and wait for a pullback to buy our favorite utility stocks.
Last month, Barron's published a sensationalist article warning of a looming death spiral for US electric utilities and traditional power generators. Although stretched valuations may mean that utility stocks are overdue for a pullback in the near term, the sector's future prospects remain undiminished.
The proposed combination of SolarCity and Tesla Motors amounts to little more than a bailout of the fatally flawed renewable-energy company that loses more money with each incremental sale. Investors looking for exposure to clean energy should stay away.
The upcoming election season is heating up, but overheated valuations are a bigger concern for investors in utility stocks. With a highly contentious presidential race likely to stoke strong emotions, investors should keep a level head and focus on what can actually change with election results. Above all, remember to bet on probabilities, not your personal politics.
Over the past several quarters, we’ve assembled a Watch List of high-quality names that we’d consider adding on a pullback in the broader market. We revisit these stocks, their stories and their growth prospects.
After successive waves of indiscriminate selling and buying, the easy money has been made in the MLP space; going forward, investors must have a firm grasp on underlying fundamentals to achieve differentiated returns.
Skepticism toward central banks’ ability to stimulate the economy through extraordinary monetary policies has helped to inaugurate a new bull market for gold. We highlight some of our favorite mining stocks for aggressive and conservative investors.
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