“Big Mo” is back in style for stocks. The result is investors continue to crowd into this year’s biggest winners while shunning underperformers, even as big blue chip averages like the S&P 500 and NASDAQ 100 set one new high after another.
In our coverage universe, momentum has been very strong since last month’s election for anything to do with renewable energy. And the result is several favorites are now ripe for taking partial profits, despite strongly bullish long-term outlooks.
At first glance, MDU Resources (NYSE:MDU) shows a fairly discouraging investment profile. But there are three very good reasons to expect much better in the next 12 months.
Strong regulated utilities combined with long-term contracted renewable energy generation: That’s the NextEra Energy (NYSE: NEE) business model. And not only does the formula work well, it’s become quite popular with investors.
Now more than ever, it’s a seller’s market for bonds of regulated electric, gas and water utilities. But our list of Fixed income picks features four bonds that trade below our recommended buy prices and meet my cardinal rule for buying any bond or preferred stock.
The first three Portfolio electric utilities have announced Q3 results and delivered guidance, and the common thread for all three companies is they ignited robust underlying earnings growth by deploying new renewable energy generating capacity, despite pandemic-related pressures
Chronic share underperformance, weak Q2 operating results and still-heavy debt raise the question - is it time to sell AT&T (NYSE: T)?
Gas companies strengthened their case during pandemic-wracked 2020 by demonstrating extremely stable economics, paying generous dividends backed by ultra-secure and growing cash flows, and still remaining small enough to have perennial takeover appeal. Those strengths promise to make natural gas distribution a hot commodity again in 2021.
What’s a well-run fiber broadband network worth these days?
From all indications, 2020 has been the worst wildfire season in California’s history. And the state is hardly alone in its misery, as an unprecedented combination of wind gusts and dry conditions have also inflicted record damages throughout the West and Rocky Mountain states.
The top two companies that dominate this essential service industry have combined market capitalization of $440 billion and annual revenue of $300 billion plus, but still trade for an average of just 10 times expected 2020 earnings. They clearly suffer from the burden of low expectations.
Elections always have consequences. They’re just rarely what investors think they will be—and almost never what’s declared beforehand in popular investment media.