4 Top Utility Stocks for Your End of May 2022 Watchlist | News
Check out these utility stocks on the stock market today
With continued volatility in the stock market, investors might consider moving to safer sectors. As such, the utilities sector might be one of the sectors that come to mind for investors in these turbulent times. After all, utility stocks include companies that provide us with our daily needs such as water, gas and electricity. And because these utilities see fairly constant demand, no matter how the economy is doing, they usually generate reliable profits, which helps them pay dividends. Utilities stocks, therefore, could be a low-risk sector for investors to take shelter in.
To take West Pinnacle (NYSE: PNW) for example, the utility holding company posted strong earnings that beat earnings and revenue estimates. The company reported stronger-than-expected sales growth and strong year-over-year customer growth. Elsewhere, investors could watch duke energy (NYSE: DUK). Last week, the company successfully secured an offshore wind lease for Carolina Long Bay. Notably, the lease could support up to 1.6 gigawatts of potential offshore wind energy, which is enough to power nearly 375,000 homes. All things considered, are these top utility stocks worth watching in the stock market today?
Utility stocks to watch now
Starting today is Essential utilities or Essential for short. It is one of the largest publicly traded suppliers of water, wastewater and natural gas in the United States. For an idea of its reach, the company serves approximately 5 million people in 10 states under the Aqua and Peoples brands. Additionally, with over 130 years of industry experience, Essential also has a proven track record in regulatory compliance, operational efficiency and environmental stewardship. With the WTRG stock moving sideways for most of the past year, could things change soon?
Last week, the company reported strong results for its first quarter of 2022. To start, revenue for the quarter was $699.3 million, up 19.8% from the first quarter of 2021. According to Essential, incremental revenue from rates and surcharges, customer growth, and volume from the natural gas regulated segment were the main contributors to revenue growth. As for its earnings, net profit was reported at $199.4 million, compared to $183.7 million the previous year. As a result, earnings per share were $0.76 for the quarter, an increase of 5.6% from $0.72 year-over-year. With Essential posting a strong quarter, is WTRG stock a buy?
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Another utility stock to watch is Seems. Essentially, it is a North American energy infrastructure company that focuses on electricity and natural gas infrastructure. For a sense of scale, Sempra employs approximately 20,000 employees and serves over 40 million consumers worldwide. Its operating companies include Southern California Gas Company and San Diego Gas & Electric, to name a few. Over the past six months, SRE stock has risen almost 30%.
On May 5, Sempra announced its first-quarter 2022 financials. The company reported total revenue of $3.82 billion, a 17.2% year-over-year increase. For comparison, Sempra brought in $3.26 billion the previous year. In the same earnings report, Sempra updated its earnings guidance for the full year. Namely, it expects earnings per common share to be between $7.11 and $7.71 in 2022. Sempra doesn’t seem to be resting on its laurels either. Earlier this week, its subsidiary Sempra Infrastructure concluded a memorandum of understanding for the sale of around 3 million tonnes per annum (Mtpa) of liquefied natural gas to the Polish Oil & Gas Company. Given all this, should you invest in SRE stocks?
Following this, we have ormat, a company that primarily engages in providing renewable energy and energy solutions to its customers. The company’s expertise lies in providing energy solutions from geothermal and recovered energy. Ormat is a geothermal industry leader that has supplied power generation equipment to customers in more than 30 countries. Apart from this, he also has expertise in energy storage solutions. Over the past year, ORA stock has risen more than 15%
Earlier this month, the renewable energy company announced its results for the first quarter of the year. Hopping, Ormat generated revenue of $183.7 million, a 10.4% year-over-year increase. The company owes this revenue growth to the performance of its Electricity segment as well as its strategic capacity additions. Alongside that, its adjusted net income was $18.4 million, up 20.8% year-over-year. Consequently, diluted earnings per share amounted to $0.33, up 22.2%. The company also provided its guidance for the rest of the year. According to its results, Ormat expects revenue of between $710 million and $735 million. Overall, is the ORA stock one to watch?
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Closing our list today is Waste Management (WM). As the name suggests, the company is one of North America’s leading full-service waste management providers. It provides services ranging from collection and disposal to recycling and renewable energy generation. Impressively, its environmental services cover nearly 21 million residential, industrial and commercial customers. And with 26,000 collection and transfer vehicles, the company has the largest fleet of trucks in the waste industry.
Last month, the company announced its financial results for the first quarter of the year. Starting with revenue, WM reported net income of $4.67 billion for the quarter, reporting a 13.4% increase over the prior year. Alongside this, its collection and disposal efficiency fell to 5.5% in the last quarter, compared to 2.8% last year. As for the company’s profitability, reported net income was $513 million, up 21.9% year-over-year. Accordingly, diluted earnings per share were $1.23, compared to $0.99 for the same period last year. “We had a great start to the year, as our first quarter results put us on track to comfortably meet our guidance for the full year,” said Jim Fish, CEO of WM. As such, should you add WM stocks to your watchlist?