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Time to Buy Utility Stocks

Duke Energy ($69.27) is 6.5% overvalued and has a gain of 7.7% over the last 12 months and is just below its 200-day SMA at $69.74 with its 50-day SMA at $70.30. The stock traded as high as $75.46 on May 1 and as low as $64.16 on Sept. 4. My monthly value level is $66.22 with a weekly risky level at $73.52.

Con Edison ($54.84) is 0.5% undervalued and is lower by just 2.2% over the last 12 months and is below its 200-day SMA at $58.32 with its 50-day SMA at $56.65. The stock traded as high as $64.02 on May 1 and as low as $54.32 on Oct. 7. Annual and monthly value levels are $54.43 and $54.29 with an annual pivot at $56.31and weekly and quarterly risky levels at $57.61 and $60.24.

Edison International (EIX) ($45.49) is 12.2% overvalued and has a gain of 1.9% over the last 12 months and is below its 200-day SMA at $48.34 with its 50-day SMA at $47.59. The stock traded as high as $54.19 on April 30 and as low as $44.26 on Sept. 5. My monthly pivot is $45.49 with a semiannual pivot at $47.05 and semiannual and annual risky levels at $51.42 and $52.36.

Exelon (EXC) ($28.20) is 4.1% overvalued and has a loss of 5.2% over the last 12 months and is below its 200-day SMA at $31.39 with its 50-day SMA at $28.41 after setting a 2013 low at $26.64 on Dec. 2. Quarterly and monthly value levels are $26.31 and $26.14 with my annual risky level at $54.96.

FirstEnergy (FE) ($32.19) is 14.1% undervalued and has a loss of 22.5% over the last 12 months and is below its 50-day and 200-day SMAs at $36.08 and $39.00 after setting a 2013 low of 32.01 on Dec. 6. I do not show a value level with a monthly pivot at $32.93 and a semiannual risky level at $34.57.

Nextera Energy (NEE) ($82.84) is 15.0% overvalued and has a gain of 19.8% over the last 12 months and is above its 200-day SMA at $81.12 and is below its 50-day SMA at $84.45 after setting a 2013 high at $89.75 on Nov. 1. I show no value levels with a monthly pivot at $86.81 with a quarterly risky level at $90.37.

PG&E (PCG) ($40.32) is 3.4% overvalued and has a loss of 1.4% over the last 12 months and is below its 200-day SMA at $43.73 and below its 50-day SMA at $41.13 after setting a 2013 low at $39.91 on Nov. 26. I show no value levels with a monthly pivot at $42.10 with a quarterly risky level at $43.22.

Public Service Enterprises (PEG) ($32.20) is 7.1% overvalued and has a gain of 7% over the last 12 months and is below its 50-day and 200-day SMAs at $33.42 and $33.54 with a recent low at $32.05 on Dec. 5. My quarterly value level is $31.47 with semiannual and monthly pivots at $31.92 and $32.40 and semiannual risky level at $35.37.

Southern Company ($40.46) is 3.1% undervalued and has a loss of 7.4% over the last 12 months and is below its 50-day and 200-day SMAs at $41.43 and $43.86 with a recent low at $40.12 on Dec. 2. My monthly value level is $38.87 with a semiannual pivot at $42.09 and annual risky levels at $44.39 and $45.60.

A way to begin adding utility stocks to an investment portfolio is to enter a GTC limit order to buy weakness to a value level presented in the profiles above. Choose the utility company that may be servicing in the state where you live.

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.

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com
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