Inflation weighs on earnings, balance sheets, and real yields, but growth opportunities remain.
Our top pick among the state's utilities offers a strong combination of value, growth, and yield.
Wind and solar generation will drive the U.S. economy's decarbonization plan.
Most utilities have strong balance sheets and dividend growth potential, but we don't think that justifies trading at 20 times earnings.
A look at the firms that offer long-term growth upside.
What does this mean for NRG and Vistra?
But there is a bright side: clean energy and clean balance sheets.
Shares for the narrow-moat utility remain slightly overvalued.
Strong fundamentals should allow the sector to continue producing positive returns even as interest rates climb.
We see the best values in high-quality gas utilities.
We expect the incoming Biden administration to speed up investment in renewable energy.
Utilities should benefit as the U.S. economy electrifies.
We are reaffirming our fair value estimates and moat ratings.
Sector fundamentals remain strong and dividends keep growing.
Record-breaking fires are causing the market to overestimate the companies' financial risks.
Coronavirus had an effect on second-quarter earnings, but utilities' long-term outlook remains strong.
Duke, Southern Company, and Edison look promising for income-seeking investors.
Usually bland first-quarter earnings reports should offer many insights for 2020 and beyond.
Finally, some buying opportunities in the sector.
The sector is 7% undervalued based on Morningstar's fair value estimates.
The firm faces stiff competition from inside and outside the industry.
Renewable energy is going to be one of the biggest growth drivers in the Utilities sector, says Morningstar's Travis Miller.
Investors should approach these lofty valuations with caution.
Utilities winners and losers as the U.S. goes green.
We think the sector is overvalued, but see some good yield opportunities.
By the end of the year, we expect a decision out of the bankruptcy court on the Northern California utility.
We are cutting our fair value estimate and reaffirming our very high uncertainty and no-moat ratings.
Renewable energy has policy momentum, but gas generation offers reliability.
If interest rates keep heading toward zero, utilities could benefit.
The sector is trading at the largest premium to our fair value estimate since 2017.
We see risks as well as opportunities.
This is Kinder Morgan's second big dividend increase in two years, and we think it's a good indication of management's commitment to shareholders.
PG&E, Edison International, and Sempra Energy have been in the news lately. Here's our top pick of the bunch.
Exceptional buying opportunity if the sector makes a modest correction.
Edison International, Dominion Energy, and Sempra Energy have good dividend growth prospects.
Uncertainty is high, but regulatory interest in creating a healthy utility with access to the capital markets means shareholders won't be wiped out in bankruptcy.
As the utility heads into bankruptcy, we still think shareholders won't be left empty-handed.
Wildfire liabilities have dogged the California utility, with some estimates up to $30 billion.
We plan to cut our fair value estimate by more than 50%, but we still believe there is positive equity value.
The bankruptcy threat could be an effective strategy that preserves sizable upside.
Our fair value estimate remains, and we are also reaffirming our no-moat rating for the utility.
Global capital investment in renewable energy, smart grid, safety, and reliability provides a long runway of earnings growth potential, though we only see select values today.
We expect the South Carolina Public Service Commission will issue a written order next week, and the acquisition will close shortly thereafter.
Both parties filed their proposed orders with South Carolina regulators, and a decision should be made by Dec. 21.
The latest merger deal appears to have won support from key opponents.
We are reassessing our fire liability valuation, uncertainty rating, and cost of capital assumption for the firm.
We've trimmed our estimates for PG&E and Edison International to reflect possible liabilities.
Utilities continue trading near fair value with only a few high-quality dividend payers trading at attractive prices.
Market skepticism about the deal closing with Dominion is leaving plenty of potential upside.
We expect regulators will allow the utility to recover any large storm expenses, resulting in little effect on shareholders.