Value Ideas: 15 Utility Stocks Undervalued By Analysts’ Target Price

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If you are looking to increase your portfolio’s defensive profile, this may be an interesting starting point for your own analysis.

To compile this list we looked for stocks with the following characteristics:

-       Market cap above $300M

-       Significant exposure to the utilities sector

-       Trading at a significant discount to analysts’ target price

We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Given this information, which of these stocks do you find more likely to reach its estimated target price?

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by discount to target price.

1. Edenor SA (EDN): Electric Utilities Industry. Market cap of $448.50M. According to analysts' estimates this stock is trading at a discount of 31.63%, when comparing the current price of $9.9 vs. their target price of $14.48. The stock has performed poorly over the last month, losing 11.58%.

2. Pampa Energia SA (PAM): Electric Utilities Industry. Market cap of $772.78M. According to analysts' estimates this stock is trading at a discount of 30.53%, when comparing the current price of $14.7 vs. their target price of $21.16. The stock has gained 41.62% over the last year.

3. Enersis S.A. (ENI): Foreign Utilities Industry. Market cap of $13.62B. According to analysts' estimates this stock is trading at a discount of 29.58%, when comparing the current price of $21.14 vs. their target price of $30.02. Relatively low correlation to the market (beta = 0.5), which may be appealing to risk averse investors. The stock has gained 14.5% over the last year.

4. GenOn Energy, Inc. (GEN): Electric Utilities Industry. Market cap of $2.89B. According to analysts' estimates this stock is trading at a discount of 25.77%, when comparing the current price of $3.63 vs. their target price of $4.89. The stock has gained 2.46% over the last year.

5. PAA Natural Gas Storage, L.P. (PNG): Gas Utilities Industry. Market cap of $1.39B. According to analysts' estimates this stock is trading at a discount of 22.0%, when comparing the current price of $23.36 vs. their target price of $29.95. The stock has gained 8.6% over the last year.

6. Covanta Holding Corporation (CVA): Electric Utilities Industry. Market cap of $2.45B. According to analysts' estimates this stock is trading at a discount of 18.54%, when comparing the current price of $16.78 vs. their target price of $20.6. Relatively low correlation to the market (beta = 0.66), which may be appealing to risk averse investors. The stock has gained 4.39% over the last year.

7. Companhia Paranaense de Energia (ELP): Electric Utilities Industry. Market cap of $7.53B. According to analysts' estimates this stock is trading at a discount of 18.31%, when comparing the current price of $27.57 vs. their target price of $33.75. The stock has gained 43.83% over the last year.

8. The AES Corporation (AES): Electric Utilities Industry. Market cap of $10.19B. According to analysts' estimates this stock is trading at a discount of 13.84%, when comparing the current price of $13.14 vs. their target price of $15.25. The stock has gained 30.74% over the last year.

9. American States Water Company (AWR): Water Utilities Industry. Market cap of $627.91M. According to analysts' estimates this stock is trading at a discount of 13.73%, when comparing the current price of $33.93 vs. their target price of $39.33. Relatively low correlation to the market (beta = 0.38), which may be appealing to risk averse investors. The stock has lost 4.08% over the last year.

10. Central Vermont Public Service Corp. (CV): Electric Utilities Industry. Market cap of $308.60M. According to analysts' estimates this stock is trading at a discount of 12.93%, when comparing the current price of $23.51 vs. their target price of $27.0. Relatively low correlation to the market (beta = 0.59), which may be appealing to risk averse investors. The stock has gained 17.2% over the last year.

11. Clean Energy Fuels Corp. (CLNE): Gas Utilities Industry. Market cap of $1.08B. According to analysts' estimates this stock is trading at a discount of 12.23%, when comparing the current price of $15.65 vs. their target price of $17.83. The stock is a short squeeze candidate, with a short float at 26.02% (equivalent to 5.86 days of average volume). It's been a rough couple of days for the stock, losing 9.68% over the last week.

12. Calpine Corp. (CPN): Electric Utilities Industry. Market cap of $7.26B. According to analysts' estimates this stock is trading at a discount of 11.41%, when comparing the current price of $16.39 vs. their target price of $18.5. The stock is a short squeeze candidate, with a short float at 5.23% (equivalent to 11.4 days of average volume). The stock has gained 24.26% over the last year.

13. Centrais Electricas Brasileiras S.A. (EBR): Electric Utilities Industry. Market cap of $16.23B. According to analysts' estimates this stock is trading at a discount of 11.18%, when comparing the current price of $14.3 vs. their target price of $16.1. The stock has performed poorly over the last month, losing 10.53%.

14. Korea Electric Power Corp. (KEP): Electric Utilities Industry. Market cap of $17.11B. According to analysts' estimates this stock is trading at a discount of 10.47%, when comparing the current price of $13.43 vs. their target price of $15.0. The stock has had a couple of great days, gaining 13.55% over the last week.

15. California Water Service Group (CWT): Water Utilities Industry. Market cap of $761.91M. According to analysts' estimates this stock is trading at a discount of 10.27%, when comparing the current price of $36.79 vs. their target price of $41.0. Relatively low correlation to the market (beta = 0.3), which may be appealing to risk averse investors. The stock has gained 4.02% over the last year.

Relevant data sourced from Finviz. Please note this data was compiled on May 9th.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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