OV / UN Valued: On April 2 three stocks in the Dow utility average were undervalued, today two are just slightly undervalued. Nine are overvalued by double-digit percentages Hold rated Williams Companies (WMB) is the most overvalued by 56.7%.
VE Rating: The only "5-Engine" or strong buy rated stock remains AES (AES).
Last 12-Month Return (%): Only two Dow utility stocks declined over the last 12 months with First Energy (FE) the biggest loser down 11% followed by Exelon (EXC) down by 10%. The biggest winner over the last 12 months is American Electric Power (AEP) with a gain of 27.2%.Forecast 1-Year Return: Only Williams Companies shows downside risk over the next 12 months with a projected slippage of 3.2%. The other 14 stocks are projected to gain between 8.5% and 12.3% over the next 12 months, led by AES. 12 Month Trailing P/E Ratios: Sector price-to-earnings ratios have become elevated between 12.9 and 39.4. 200-Day Simple Moving Averages: Only First Energy is trading below its 200-day. This means that the other 14 stocks are at risk of reversion to the mean. Recent High / Date of High: Each of the 15 Dow utilities stocks set highs for the move between April 23 and May 8 with 11 peaking on April 30 or May 1.
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. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV