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Dow Utilities Remain Buy Rated

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 - Get Report) is the most overvalued by 56.7%.

VE Rating: The only "5-Engine" or strong buy rated stock remains AES (AES - Get Report).

Last 12-Month Return (%): Only two Dow utility stocks declined over the last 12 months with First Energy (FE - Get Report) 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 - Get Report) 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.

This article is commentary 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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SYM TRADE IT LAST %CHG
AES $13.46 0.00%
AEP $57.88 0.00%
FE $36.32 0.00%
WMB $52.57 0.00%
XLU $45.15 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

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