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The Zacks Analyst Blog Highlights: NRG Energy, Polar Power, National Fuel Gas, AquaVenture and Consolidated Communications
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For Immediate Release
Chicago, IL – September 30, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NRG Energy Inc. (NRG - Free Report) , Polar Power Inc. (POLA - Free Report) , National Fuel Gas Co. (NFG - Free Report) , AquaVenture Holdings Ltd. and Consolidated Communications Holdings Inc. (CNSL - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Utilities Top S&P 500 Amid Market Volatility: 5 Best Picks
The Utilities sector is set to become the best performer of the S&P 500 Index in the third quarter of 2019. Although Wall Street is recovering impressively in 2019 after a disastrous 2018, several headwinds persist.
Utilities are a safe bet during times of market turmoil, as they are relatively stable due to the essential nature of the products they offer. Consequently, it will be prudent to invest in utility stocks with a favorable Zacks Rank to secure gains in this erratic market.
Impressive Performance by Utilities Sector in 2019
The utilities sector was the best performer of the 11 broad sectors within the benchmark S&P 500 Index in 2018 as a result of the Wall Street mayhem. Utilities gained 4.9% compared with a 6.2% loss of the S&P 500 Index. However, Wall Street recovered impressively in the beginning of 2019, notching the best-performing first quarter in three decades.
Meanwhile, market volatility started spoiling the Wall Street party intermittently in the second quarter of 2019. Thereafter, uncertainty over the U.S.-China trade deal, global economic slowdown, inversion of government bond yield curve in August, and geopolitical disturbances like Brexit cropped up as the primary reasons for market fluctuation. And now, the initiation of an impeachment proceeding against President Donald Trump could be an added concern.
So far in the third quarter of 2019, S&P 500’s Utilities Select Sector SPDR has gained 9.5% while the benchmark index itself rose just 2.2%. During the past six months, the utilities sector once again advanced most with a gain of 10.1% while the broad-market index advanced a little less than 5.7%.
Year to date, utilities are the third-best performer, surging 22.7%, after the technology sector (30.3%) and real estate (27.6%). Notably, the S&P 500 Index has climbed 18.8% so far in 2019.
Utilities Immune to Vagaries of Economic Cycle
The Utilities sector is mature and fundamentally strong as demand for such services is generally immune to the changes in the economic cycle. It's because these companies provide basic services like electricity, gas, water and telecommunications, which can never go out of demand.
Consequently, adding stocks from the utility basket usually lends more stability to a portfolio in an uncertain market condition. Moreover, the sector is known for stability and visibility of its earnings and cash flows. Stable earnings enable utilities to pay out consistent dividends that make them more attractive to income-oriented investors.
Utility companies enjoy a reputation for being safe given the regulated nature of their business, which lend their revenues a high level of certainty. These companies also benefit from the domestic orientation of their business, which shields them from foreign currency translation issues that are lately plaguing the other industries.
Our Top Picks
Stock markets are likely to remain volatile in near future due to trade concerns, global growth woes and political issues. Consequently, investment in defensive sectors such as utilities should be fruitful.
NRG Energy Inc.is the leading integrated power company in the United States, built on the strength of its diverse competitive electric generation portfolio and leading retail electricity platform. The company has an expected earnings growth rate of 65.1% for the current year. The Zacks Consensus Estimate for the current year has improved 1.4% over the last 60 days.
Polar Power Inc.designs, manufactures, and sells direct current (DC) power systems for applications in the telecom, military, electric vehicle charging, cogeneration, distributed power, and uninterruptable power supply markets in the United States and internationally. The company has an expected earnings growth rate of 237.5% for the current year. The Zacks Consensus Estimate for the current year has improved 9.1% over the last 60 days.
National Fuel Gas Co.is an integrated diversified energy company. It operates through five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The company has an expected earnings growth rate of 5.7% for the current year. The Zacks Consensus Estimate for the current year has improved 5.4% over the last 60 days.
AquaVenture Holdings Ltd.provides water-as-a-service solutions in North America, the Caribbean, and South America. It operates in two segments, Seven Seas Water and Quench. The company has an expected earnings growth rate of 9% for the current year. The Zacks Consensus Estimate for the current year has improved 14.5% over the last 60 days.
Consolidated Communications Holdings Inc.offers a wide range of telecommunications services including local and long distance telephone, Digital Phone, High-Speed Internet access and Digital TV to individuals and businesses in the United States. The company has an expected earnings growth rate of 83.3% for the current year. The Zacks Consensus Estimate for the current year has improved 45.5% over the last 60 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: NRG Energy, Polar Power, National Fuel Gas, AquaVenture and Consolidated Communications
For Immediate Release
Chicago, IL – September 30, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NRG Energy Inc. (NRG - Free Report) , Polar Power Inc. (POLA - Free Report) , National Fuel Gas Co. (NFG - Free Report) , AquaVenture Holdings Ltd. and Consolidated Communications Holdings Inc. (CNSL - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Utilities Top S&P 500 Amid Market Volatility: 5 Best Picks
The Utilities sector is set to become the best performer of the S&P 500 Index in the third quarter of 2019. Although Wall Street is recovering impressively in 2019 after a disastrous 2018, several headwinds persist.
Utilities are a safe bet during times of market turmoil, as they are relatively stable due to the essential nature of the products they offer. Consequently, it will be prudent to invest in utility stocks with a favorable Zacks Rank to secure gains in this erratic market.
Impressive Performance by Utilities Sector in 2019
The utilities sector was the best performer of the 11 broad sectors within the benchmark S&P 500 Index in 2018 as a result of the Wall Street mayhem. Utilities gained 4.9% compared with a 6.2% loss of the S&P 500 Index. However, Wall Street recovered impressively in the beginning of 2019, notching the best-performing first quarter in three decades.
Meanwhile, market volatility started spoiling the Wall Street party intermittently in the second quarter of 2019. Thereafter, uncertainty over the U.S.-China trade deal, global economic slowdown, inversion of government bond yield curve in August, and geopolitical disturbances like Brexit cropped up as the primary reasons for market fluctuation. And now, the initiation of an impeachment proceeding against President Donald Trump could be an added concern.
So far in the third quarter of 2019, S&P 500’s Utilities Select Sector SPDR has gained 9.5% while the benchmark index itself rose just 2.2%. During the past six months, the utilities sector once again advanced most with a gain of 10.1% while the broad-market index advanced a little less than 5.7%.
Year to date, utilities are the third-best performer, surging 22.7%, after the technology sector (30.3%) and real estate (27.6%). Notably, the S&P 500 Index has climbed 18.8% so far in 2019.
Utilities Immune to Vagaries of Economic Cycle
The Utilities sector is mature and fundamentally strong as demand for such services is generally immune to the changes in the economic cycle. It's because these companies provide basic services like electricity, gas, water and telecommunications, which can never go out of demand.
Consequently, adding stocks from the utility basket usually lends more stability to a portfolio in an uncertain market condition. Moreover, the sector is known for stability and visibility of its earnings and cash flows. Stable earnings enable utilities to pay out consistent dividends that make them more attractive to income-oriented investors.
Utility companies enjoy a reputation for being safe given the regulated nature of their business, which lend their revenues a high level of certainty. These companies also benefit from the domestic orientation of their business, which shields them from foreign currency translation issues that are lately plaguing the other industries.
Our Top Picks
Stock markets are likely to remain volatile in near future due to trade concerns, global growth woes and political issues. Consequently, investment in defensive sectors such as utilities should be fruitful.
We have narrowed down our search to five utility stocks with a Zacks Rank #1 (Strong Buy) and strong growth potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
NRG Energy Inc.is the leading integrated power company in the United States, built on the strength of its diverse competitive electric generation portfolio and leading retail electricity platform. The company has an expected earnings growth rate of 65.1% for the current year. The Zacks Consensus Estimate for the current year has improved 1.4% over the last 60 days.
Polar Power Inc.designs, manufactures, and sells direct current (DC) power systems for applications in the telecom, military, electric vehicle charging, cogeneration, distributed power, and uninterruptable power supply markets in the United States and internationally. The company has an expected earnings growth rate of 237.5% for the current year. The Zacks Consensus Estimate for the current year has improved 9.1% over the last 60 days.
National Fuel Gas Co.is an integrated diversified energy company. It operates through five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The company has an expected earnings growth rate of 5.7% for the current year. The Zacks Consensus Estimate for the current year has improved 5.4% over the last 60 days.
AquaVenture Holdings Ltd.provides water-as-a-service solutions in North America, the Caribbean, and South America. It operates in two segments, Seven Seas Water and Quench. The company has an expected earnings growth rate of 9% for the current year. The Zacks Consensus Estimate for the current year has improved 14.5% over the last 60 days.
Consolidated Communications Holdings Inc.offers a wide range of telecommunications services including local and long distance telephone, Digital Phone, High-Speed Internet access and Digital TV to individuals and businesses in the United States. The company has an expected earnings growth rate of 83.3% for the current year. The Zacks Consensus Estimate for the current year has improved 45.5% over the last 60 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.