This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

4 Utility Stocks More Profitable Than Industry Average

Looking to trade the utilities sector?  We screened all traded utility stocks to find names more profitable than the industry average.

We judged profitability on the basis of three trailing twelve month (TTM) margins:

TTM Gross Margin- This measures the percent change in trailing 12 month revenue and trailing 12 month cost. It is the percent of revenue left after paying expenses.

TTM Operating Margin- This is more of a focus on production expenses. In its simplest form, it is the revenue left over after paying variable costs associated with the production of a good.

TTM Pretax Margin- This is the company’s earnings before taxes incorporating all expenses.

Firms with higher margins than their industry peers indicate they are  operating more efficiently.

The three profitability screens take general measures of productivity and efficiency and break them down into three subcategories.  When a company is outperforming the industry average by 5% in all three categories, this is considered bullish.

Business Section: Investing Ideas

Below are four utility stocks that are more profitable than the industry average. Do you think they can keep it up? Use this list as a starting point for your own analysis. 

Use the Compar-O-Matic to see the one-year returns for the companies below. Press “play” to see how the returns have varied over the last two years.

Analyze These Ideas: Getting Started

 

1. Cleco Corporation ( CNL): Engages in the generation, transmission, distribution, and sale of electricity in Louisiana. Market cap at $3.01B.

TTM gross margin at 41.67% vs. industry average at 29.1%. TTM operating margin at 28.34% vs. industry average at 19.09%. TTM pretax margin at 23.04% vs. industry average at 12.96%.
 

2. Pinnacle West Capital Corporation ( PNW): Provides retail and wholesale electric services primarily in the State of Arizona. Market cap at $6.7B.

TTM gross margin at 38.04% vs. industry average at 29.11%. TTM operating margin at 25.8% vs. industry average at 19.09%. TTM pretax margin at 19.88% vs. industry average at 12.96%.
 

3. Southern Company ( SO): Operates as a utility company that provides electric service in the southeastern United States. Market cap at $42.B.

TTM gross margin at 37.76% vs. industry average at 29.1%. TTM operating margin at 26.99% vs. industry average at 19.09%. TTM pretax margin at 19.57% vs. industry average at 12.96%.
 

4. Westar Energy, Inc. ( WR): Engages in the generation, transmission, and distribution of electricity It services approximately 690,000 customers in Kansas. Market cap at $4.43B.

TTM gross margin at 36.82% vs. industry average at 29.11%. TTM operating margin at 24.86% vs. industry average at 19.09%. TTM pretax margin at 18.07% vs. industry average at 12.96%.
 

-Ryan Horch, Kapitall

null

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs