5 Electric Power Stocks to Watch on Improving Demand
The prospects of the Zacks Utility – Electric Power industry look better in 2H21 than the comparable prior-year period as demand for utility services from the Commercial and Industrial (C&I) group is picking up on the vaccination drive and resumption of economic activities. Demand from the residential group remains stable as some employees are still working from home. The National Oceanic and Atmospheric Administration’s climate prediction center has forecast another above-normal Atlantic hurricane season for 2021. Per NOAA, in 2021, there is a 60% chance of an above-normal season, 30% chance of a near-normal season and 10% chance of a below-normal season. Utilities operating in the United States have been gaining experience from each hurricane season and taking measures to strengthen their infrastructure. They have worked toward increasing operational resilience, lowering expenses and investing consistently to boost infrastructure and offer services more efficiently. The prevailing near-zero level interest rates are helping in generating necessary funds for capital projects. Most of the utilities operating in the United States ensured 24X7 supply of electricity, water and natural gas to customers even if they failed to pay their utility bills and provided relaxation to those in financial distress. NextEra Energy NEE, with large renewable operations, offers an excellent opportunity to stay invested in the utility space. Other utilities that are worth holding in your portfolio include The Southern Company SO, Xcel Energy Inc. XEL, WEC Energy Group WEC and Entergy Corporation ETR.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
Southern Company The (SO) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report
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