The utility sector is made up of companies that provide essential services. This includes electricity, natural gas, water, and sewage to homes and businesses. These companies operate within a highly regulated environment and are known for their infrastructure-intensive nature. Requiring significant investments in plants, grids, pipelines, and other assets to deliver their services. As a result, they typically have stable cash flows, driven by consistent consumer demand irrespective of economic cycles. This makes them resistant to market volatility.
When it comes to investing, utility stocks are often regarded as defensive stocks. This is because they provide investors with steady dividends and a measure of safety during economic downturns. Their stable and predictable earnings, coupled with the essential nature of their services, make them attractive for income-seeking investors, especially retirees.
However, like all sectors, it’s essential for investors to do thorough research. You should consider factors like regulatory changes, infrastructure needs, and technological advancements in the energy landscape. This can influence the profitability and growth potential of companies within this sector. Taking this into consideration, here are three utility stocks to watch in the stock market now.
Utility Stocks For Your October 2023 Watchlist
- NextEra Energy Inc. (NYSE: NEE)
- Duke Energy Corporation (NYSE: DUK)
- Constellation Energy Corporation (NASDAQ: CEG)
NextEra Energy (NEE Stock)
Starting off, NextEra Energy Inc. (NEE) is a leading energy company primarily involved in the generation, transmission, and distribution of electricity. With a diversified portfolio, it’s particularly recognized for its investments in renewable energy sources like wind and solar power.
Earlier this week, NextEra Energy announced its intention to release third-quarter 2023 financial results before the New York Stock Exchange opens on Tuesday, October 24, 2023. The results will be made available on the company’s official website.
Over the last five trading days, shares of NEE stock have recovered by 8.65%. Meanwhile, during Thursday’s morning session, NextEra Energy stock is trading modestly lower by 0.71% at $53.16 per share.
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Duke Energy Corp (DUK Stock)
Next, Duke Energy Corporation (DUK) is a major American energy holding company. It provides electrical power to a vast customer base in the Southeast and Midwest regions of the U.S. Through its subsidiaries. The company is responsible for supplying and delivering energy to millions of residential, commercial, and industrial customers.
Just this week, Duke Energy Corporation announced plans to release its third-quarter 2023 financial results at 7 a.m. ET on Thursday, November 2. The results will be available on the company’s official website. Additionally, an earnings conference call for analysts has been scheduled for 10 a.m. ET on the same day to discuss these results and other related business updates.
Looking at the last five trading days, shares of DUK stock are trading higher by 4.75%. While, during Thursday’s mid-morning trading action, Duke Energy stock opened lower by 1.06% so far, trading at $88.90 a share.
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Constellation Energy Corp. (CEG Stock)
Finally, Constellation Energy Corporation (CEG) is an energy company that offers a broad range of power, natural gas, renewable energy, and energy management products and services for homes and businesses.
Back in August, Constellation Energy reported better-than-expected second-quarter 2023 financial results. Diving in, the company posted Q2 2023 earnings of $2.56 per share on revenue of $5.45 billion for the quarter. This was versus analysts’ consensus estimates which were an EPS of $0.78 and revenue estimates of $4.55 billion.
In the last five trading days, shares of CEG stock have advanced by 8.35%. Meanwhile, during Thursday’s mid-morning trading session Constellation Energy stock opened slightly higher by 0.20% at $115.30 per share.
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