NSTAR Is Made for Winter of Discontent

For a related story on utilities, see Alan Farley's take on the industry.

If you're like Alan Greenspan and his cohorts in government who are shocked at the credit and banking crises and now have no idea where to invest, keep an electric utility in mind. Our models rate NSTAR Electric (NST Quote) an "A minus," and the company has earned that rating. Given the turmoil in the stock market, NSTAR is down only 2% this year.

The shares trade at $33, down from a 52-week high of $40, producing a modest price-earnings multiple of 15 and a healthy yield of 4.2%. Both the P/E and yield signal a stock with a stable earnings outlook. Put another way, this is not a growth stock with a very high P/E, or low or negligible yield, but a stable revenue-generator during volatile times. ...