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Nov. 4, 2019, 1:42 p.m. EST

Utility stocks fall after CFRA downgrades S&P 500 subsector

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By Ciara Linnane

CFRA analyst Sam Stovall downgraded his view of the S&P 500 utilities subsector to underweight from market weight on Monday, after a run up over several months sparked by investor uncertainty and the hunt for yield. "The sector currently trades at a 37% premium to its average P/E on next-12-month (NTM) EPS estimates since 2000," Stovall wrote in a note to clients. "In addition, it currently trades at a 13% premium to the S&P 500's NTM average P/E versus its normal 7% discount." The group also has a lower-than-average number of constituents with a favorable rating, he wrote, while technically, its relative strength has started to deteriorate versus the overall index. The subsector's component stocks were mostly lower, with 25 decliners compared with 3 gainers. CMS Energy /zigman2/quotes/209852159/composite CMS +2.95% led the decliners and was last down 2.4%, followed by NextEra Energy Inc. /zigman2/quotes/200558509/composite NEE +1.54% down 2.0% and Xcel Energy Inc. /zigman2/quotes/200626850/composite XEL +2.13% down 2.0%. NRG Energy /zigman2/quotes/208308731/composite NRG +1.69% was the biggest gainer, up 0.4%. The S&P 500 /zigman2/quotes/210599714/realtime SPX +1.60% was up 0.4%.

/zigman2/quotes/209852159/composite
US : U.S.: NYSE
$ 61.34
+1.76 +2.95%
Volume: 1.78M
Sept. 25, 2020 4:02p
P/E Ratio
23.23
Dividend Yield
2.66%
Market Cap
$17.56 billion
Rev. per Employee
$796,870
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/zigman2/quotes/200558509/composite
US : U.S.: NYSE
$ 281.82
+4.28 +1.54%
Volume: 1.36M
Sept. 25, 2020 4:00p
P/E Ratio
38.93
Dividend Yield
1.99%
Market Cap
$137.99 billion
Rev. per Employee
$1.15M
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/zigman2/quotes/200626850/composite
US : U.S.: Nasdaq
$ 68.50
+1.43 +2.13%
Volume: 2.22M
Sept. 25, 2020 4:00p
P/E Ratio
25.65
Dividend Yield
2.51%
Market Cap
$35.99 billion
Rev. per Employee
$1.04M
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/zigman2/quotes/208308731/composite
US : U.S.: NYSE
$ 29.52
+0.49 +1.69%
Volume: 1.66M
Sept. 25, 2020 4:00p
P/E Ratio
1.75
Dividend Yield
4.07%
Market Cap
$7.21 billion
Rev. per Employee
$1.96M
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/zigman2/quotes/210599714/realtime
US : S&P US
3,298.46
+51.87 +1.60%
Volume: 2.18B
Sept. 25, 2020 5:06p
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