3 Utility Picks To Tap Likely Rise In Electricity Consumption

Demand for electricity in the industrial sector is also poised to make a comeback as economic conditions improve. EIA estimated that industrial production by electricity-sensitive industries is set to increase 2.9% in 2021 following a fall of 6.9% in 2020. This resulted in EIA’s projection that retail sales of electricity to the industrial sector is set to increase 1.2% in 2021 and 1.1% in 2022. To aid the growing consumption, EIA also expects power generation to rise 1.2% in 2021 and 1.5% in 2022. Moreover, Fitch Ratings predicted a stable outlook for the U.S. utilities sector in 2021, supported “by low interest rates, low commodity costs, modest secular sales growth assumptions and balanced rate regulation,” as mentioned in an S&P Global Market Intelligence article.

3 Top Electric Utility Picks

The electric utilities sector in the United States seems poised to make a comeback in 2021. This will be supported by increasing electricity consumption in commercial and industrial sectors. Moreover, residential electricity consumption is also set to stay on its growth path. This makes it a good time to invest in electric utility names that can make the most of this trend going forward. Notably, we have selected three such stocks that carry a Zacks Rank # 2 (Buy).

ALLETE, Inc. (ALE - Free Report) operates as an energy company. It generates electricity from coal-fired, hydroelectric, natural gas-fired, biomass co-fired, and solar. The Zacks Consensus Estimate for its current-year earnings increased 1.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 9.6%.

CenterPoint Energy, Inc. (CNP - Free Report) operates as a public utility holding company in the United States. The company's Houston Electric T&D segment provides electric transmission and distribution services to electric utility. The Zacks Consensus Estimate for its current-year earnings increased 5.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.6%.

View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.