Utilities: Back to Fair Value With Some Emerging Opportunities
Utilities investors have buying opportunities but should pick carefully.
Utilities have had a rough road the past six months, down 9% since they peaked in November while the S&P 500 is up 9% since then, both including dividends. No other sector has performed so poorly during that time period. We don't see that trend reversing any time soon. A strong economy and a steady climb in interest rates rightfully could send investors away from utilities.
Travis Miller does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.