5 Utilities Stocks Near 52-Week Lows

If you're aiming to "buy low and sell high," then it makes infinite sense to start your search with bargain-priced stocks. Regularly reviewing a list of stocks trading near their 52-week lows can be a great first step.

Here, I'll try to do the initial legwork for you. To prevent us from being inundated with scores of disparate companies, I'll conduct my search by industry. This will allow us to make some initial comparisons among semi-related companies.

There are 24 industry groups as defined by the Global Industry Classification Standard (GICS). Utilities are one of them.

Below are the top five companies in this space (by market cap) that are hugging 52-week lows.

Company

Market Capitalization (in millions)

% Change From 52-Week Low

P/E Ratio (trailing)

 

Exelon (NYSE: EXC  )  $27,779 12.8%  10.6
Duke Energy (NYSE: DUK  )  $23,446  14.9%  34.9
Public Service Enterprise Group (NYSE: PEG  )  $16,823  14.6%  10.9
Korea Electric Power (NYSE: KEP  )  $16,642  5.6%   NM
Entergy (NYSE: ETR  )  $13,538  6%  10.6

Source: Capital IQ, a division of Standard & Poor's. Data as of Oct. 24.

Utilities offer the promise of some resistance to volatility and generally high dividend yields. Exelon, Duke, Public Service Enterprise, and Entergy all are yielding above 4%.

One thing to keep an eye on in this space is free cash flows. Because of high capital needs, free cash flow often lags earnings. That's the case with each of the four high dividend payers (on a trailing-12-months basis) above except Entergy.

If you are interested in reading more about these stocks, add them to My Watchlist to find all of our Foolish analysis on them.

Anand Chokkavelu doesn't own shares of any companies mentioned. He posts his favorite articles on his Twitter feed.

Exelon is a Motley Fool Inside Value pick. Duke Energy is a former Motley Fool Income Investor selection. The Fool owns shares of Exelon.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.


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  • Report this Comment On October 25, 2010, at 9:07 PM, TMFBomb wrote:

    An additional note I should have mentioned...thanks to a reader for the reminder. Since utilities stocks are fairly stable, many tend to trade in a tight range. For example, Duke Energy is close to its 52-week high as well as its 52-week low.

    As always, valuation is the key, not price movement. This list is just a tool I use to identify potential values.

    -Anand

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