Good stocks to invest in now? 4 Utility Stocks You Should Know About

4 top utility stocks to watch this week

As the stock market braces for headwinds of geopolitical uncertainty and inflationary pressures, investors may turn to defensive sectors. As such, utility stocks might be worth considering as they are generally better equipped to deal with market volatility. This is because utility stocks are made up of companies that provide essential products such as water, electricity and gas. Moreover, the demand for these public services is probably stable even in times of war or inflation. Additionally, utility companies are able to offer strong dividends through their consistent stream of income, making them a safe choice for investors.

Investors can watch the likes of Dominion Energy (NYSE:D). In March, the energy company received approval from the Virginia State Corporation Commission to add 1,000 megawatts of carbon-free power to its generation portfolio. In particular, the approved expansion includes 15 projects that the company will complete in 2022 and 2023. In addition to Dominion, we have Essential utilities (NYSE: WTRG). The company recently acquired the Lower Makefield Township sewer system. The $53 million sewer system serves approximately 11,000 customer connections in Pennsylvania townships. And on that note, check out these four utility stocks on the stock market today.

Utilities inventory to buy [Or Sell] This week

NextEra Energy

NextEra Energy is a renewable energy company that owns the largest rate-regulated electric utility in the United States, Florida Power & Light Company (FPL). FPL serves more than 5.6 million customer accounts, helping more than 11 million residents across Florida with clean, reliable and affordable electricity. It also owns a competitive clean energy business, NextEra Energy Resources (NEER), which is one of the largest generators of renewable energy from wind and solar and a world leader in battery storage. Through its subsidiaries, NextEra generates clean, emission-free electricity from seven commercial nuclear power plants in Florida, New Hampshire and Wisconsin.

Last week, NextEra released its first quarter 2022 financial results. To start, the company had net revenue of $2.89 billion, most of which came from its FPL segment. As for its earnings, NextEra reported adjusted earnings of $1.46 billion for the quarter, an increase from $1.33 billion last year. Hence, this results in earnings of $0.74 per share and $0.67 per share respectively. As for NextEra’s outlook for 2022, it expects adjusted earnings per share to be between $2.75 and $2.85. And for 2023 to 2025, the company expects growth of around 6% to 8% per year from the adjusted earnings per share forecast for 2022. Given that, will you be watching NEE’s stock?

Source: TD Ameritrade Terms of Service

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California Water Utility Group

Following this, we have California Water Utility Group or CWT for short. For a sense of scale, the company provides high quality water and sanitation services to more than two million people in more than 100 communities through its five subsidiaries. These subsidiaries include California Water, Hawaii Water, New Mexico Water, Washington Water and Texas Water. Therefore, it is no surprise that CWT is the third largest publicly traded water utility company in the United States. CWT shares have traded sideways over the past year. Could things change soon?

On Monday, its subsidiary New Mexico Water successfully completed the acquisition of Morningstar Water System from Animas Valley Land and Water (AV Water). This acquisition will now enable New Mexico Water Service to provide high quality water services to Morningstar customers. Additionally, it will also add 2,000 customers to New Mexico Water’s customer base. In addition, CWT’s Washington subsidiary recently signed an agreement to acquire the water assets of Stroh’s Water Company, which will add 900 customers to its customer base. Overall, CWT has made consistent efforts to grow its customer base. As CWT’s client base continues this uptrend, will you be watching CWT’s stock?

CWT Stock
Source: TD Ameritrade Terms of Service

Sempra Energy

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. Since the beginning of 2022, the SRE share has appreciated by almost 30%.

At the end of March, Sempra and the French oil major TotalEnergies agreed to extend their collaborations on LNG and wind projects. This collaboration aims to improve energy supply and reduce Europe’s dependence on Russian oil and gas imports. Clearly, it looks like US exporters are stepping up as Europe searches for alternative energy sources following sanctions imposed on Moscow. CEO Jeffrey Martin added: “With last week’s energy agreement between the United States and the European Commission, alliances between some of the major energy companies like TotalEnergies and Sempra are increasingly important for transatlantic trade and energy security. That being said, should you invest in SRE stocks?

SRE Stock Chart
Source: TD Ameritrade Terms of Service

Vidler water

Finishing our list of utility actions today is Vidler Water Resources, or Vidler for short. It is essentially a water resources company that focuses on developing a reliable water supply in geographic areas with no available water resources. Vidler provides water development solutions to end users by identifying, acquiring and developing water rights, often within fragmented agricultural markets. Over time, the company will convert these water rights to higher value municipal and industrial uses. Over the past year, the price of VWTR shares has increased by more than 75%.

Last month, the water resources company released its financial results for the fourth quarter ended Dec. 31, 2021. To start, it raked in $23.44 million for the quarter, a strong year-over-year increase. other compared to $3.46 million in 2020. This huge differential is due to the company’s large sale of 55,000 long-term storage credits (LTSC) from its storage facility in Arizona. The sale generated approximately $22 million in revenue for Vidler. In addition, net profit amounted to $33.68 million, which was triple the amount of $10.1 million in the previous year. Given the strong quarterly performance, should you invest in VWTR shares?

VWTR Stock
Source: TD Ameritrade Terms of Service

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