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TheStreet Open House

Dow Utilities Outperform S&P 500 in First Quarter

Forecast 1-Year Return: Only WMB shows downside risk over the next 12 months with a projected slippage of just 0.8%. The biggest winners are projected to be NI and AES with projected gains of 12.0% and 13.6% respectively.

12 Month Trailing P/E Ratios: Sector P/E ratios range from 10.7 for AES to 39.1 for WMB.

200-Day Simple Moving Averages: Only FE is trading below its 200-day. This means that the other 14 stocks are at risk of reversion to the mean.

Here's how to use the Value Levels and Risky Levels for stocks in today's table:

Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.

If you want to buy-and-trade the energy sector without stock picking consider using the Utilities Select Sector SPDR (XLU) ($39.01). My semiannual and monthly value levels are $36.48 and $35.88 with a weekly pivot at $39.00 and quarterly and annual risky levels at $40.27 and $40.52.



Chart Courtesy of Thomson / Reuters

Keep in mind that utilities stocks are considered investments for the annual dividend. The dividend yield for the XLU is 3.52%. A stock that had a twelve month gain of 14% and a 3.5% dividend yield can be sold to lock in the equivalent of four years of dividends.



At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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