|Bid||30.18 x 4000|
|Ask||0.00 x 900|
|Day's Range||30.22 - 30.79|
|52 Week Range||25.30 - 32.46|
|Beta (3Y Monthly)||0.65|
|PE Ratio (TTM)||11.81|
|Earnings Date||Feb 20, 2019 - Feb 25, 2019|
|Forward Dividend & Yield||1.64 (5.37%)|
|1y Target Est||31.38|
PPL (PPL) delivered earnings and revenue surprises of 6.12% and -0.57%, respectively, for the quarter ended December 2018. Do the numbers hold clues to what lies ahead for the stock?
Southern Company: Analysts’ Q4 Earnings Estimates(Continued from Prior Part)Analysts’ target price Based on analysts’ estimates, Southern Company (SO) stock has a median target price of $47.09, which indicates an estimated downside of 4.4% for
Southern Company: Analysts’ Q4 Earnings Estimates(Continued from Prior Part)Southern Company’s dividend Southern Company (SO) is trading at a dividend yield of 4.9%, which is notably higher than broader utilities’ average yield close to 3.3%.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look atRead More...
PPL (PPL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
How Last Week Went for Utilities: Valuation, Returns, and More(Continued from Prior Part)ValuationPPL’s (PPL) dividend yield is 5.2%, one of the highest among utilities, and its forward PE multiple is 12.7x. Its five-year historical average is
How Did Utilities Fare Last Week?(Continued from Prior Part)Top-yielding utilities Currently, utilities (XLU) offer a yield of 3.3%, which implies a spread of almost 50 basis points to the benchmark ten-year Treasury yield and ~120 basis points to
Weekly Review: How Utilities Performed Last WeekXLU lagged broader markets Last week, utilities started on a weak note. The Utilities Select Sector SPDR ETF (XLU) fell marginally, while the S&P 500 rose almost 3% in the week ending January 18.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how PPL Corporation's (NYSE:PPL) P/E Read More...
Analyzing Utilities in the Week Ending January 4 (Continued from Prior Part) ## Total return Utilities played out well last year amid broader markets’ volatility. The utilities, including dividends, returned more than 6%, while the S&P 500 returned -6% last year. Utilities generally have stable earnings due to their low-risk and regulated operations. Investors usually turn to utilities during uncertainties due to their slow and stable stock price movements and high dividend payments. Currently, utilities yield 3.3%, which is notably higher than broader markets. Utilities (XLU) (IDU) didn’t just beat broader markets last year. They have outperformed the S&P 500 in the past three and five years as well. In the last five years, utilities returned 68%, while the S&P 500 returned 52%. The total return considers the capital appreciation and dividends paid in a particular period. Regulated utilities Southern Company (SO) and PPL (PPL) offer a dividend yield of 5.4% and 5.9%, respectively. Both of the utilities lagged their peers in terms of total returns in the last few years. To learn why these top-yielding utilities failed, read Southern Company’s Total Returns Compared to Its Peers. Continue to Next Part Browse this series on Market Realist: * Part 1 - Utilities: Gains and Losses Last Week * Part 2 - XLU: What to Expect from Utilities in 2019 * Part 4 - Comparing Utilities and Treasury Yields
Why PPL Stock Looks Attractive Compared to Its Peers (Continued from Prior Part) ## Analysts’ recommendations Wall Street analysts have given PPL (PPL) stock a median target price of $31.6, which implies an estimated upside of almost 13% for the next 12 months. Currently, PPL is trading at $28.0. Among the 15 analysts tracking PPL surveyed by Reuters, eight recommended a “hold,” two recommended a “strong buy,” four recommended a “buy,” and one recommended a “sell.” The following chart shows how analysts’ views on PPL stock have changed in the last six months. ## Peers’ target prices Consolidated Edison (ED) stock has a median target price of $78.9—compared to its current market price of $75.3, which indicates an upside potential of ~5% going forward. Among the 17 analysts tracking Consolidated Edison, one recommended a “strong buy,” ten recommended a “hold,” five recommended a “sell,” and one recommended a “strong sell” as of January 4. Among the 15 analysts tracking Xcel Energy (XEL), two recommended a “strong buy,” two recommended a “buy,” and 11 recommended a “hold.” The median target price of $51.5 implies an ~7% upside potential compared to its current price of $48.0. PPL appears to be an attractive opportunity given the total return potential, handsome yield, and estimated upside. Read Do You Own Analysts’ Favorite Utility Stocks? to learn more. Browse this series on Market Realist: * Part 1 - PPL Stock Looks Attractive Compared to Its Peers * Part 2 - What Do PPL’s Chart Indicators and Short Interest Suggest? * Part 3 - What PPL’s Implied Volatility Trends Indicate
Why PPL Stock Looks Attractive Compared to Its Peers (Continued from Prior Part) ## Implied volatility On January 3, PPL’s (PPL) implied volatility was close to 25%—near its 15-day average volatility. Recently, the Utilities Select Sector SPDR ETF’s (XLU) implied volatility was 20%. The implied volatility represents investors’ unease. Rising volatility is usually related to falling stock prices. Broader markets witnessed increased volatility in the last few months. The S&P 500 witnessed an implied volatility of 22% on January 3. Usually, broader markets’ implied volatility levels are lower than utilities at large. Recently, Xcel Energy (XEL) and Consolidated Edison’s (ED) implied volatility was close to 20%. Usually, utilities have been more volatile than broader markets. In the past few months, the S&P 500 experienced more volatility than utilities. Among utilities, wildfire-stricken PG&E (PCG) stock experienced an implied volatility of 72%—the highest among these defensives. To learn how top utility stocks played out recently and how they’re placed for 2019, read How Top Utility Stocks Are Placed at the Beginning of 2019. Continue to Next Part Browse this series on Market Realist: * Part 1 - PPL Stock Looks Attractive Compared to Its Peers * Part 2 - What Do PPL’s Chart Indicators and Short Interest Suggest? * Part 4 - PPL Stock: Analysts’ Recommendations
Why PPL Stock Looks Attractive Compared to Its Peers (Continued from Prior Part) ## Chart indicators The recent weakness in PPL (PPL) stock has pushed it below both of its major support levels, which might bother investors. Currently, PPL is trading at $28.0, which is almost 7% and 4% below its 50-day and 200-day moving average levels, respectively. The levels close to $30.2 and $29.1 will likely act as a resistance in the short term. PPL’s current RSI (relative strength index) is at 33, which indicates that it isn’t “overbought” or “oversold.” ## Short interest The short interest in PPL stock decreased 6% on December 14. On November 30, the shorted shares in PPL were 44.9 million. PPL’s total shorted shares decreased to 42.3 million on December 14. A fall in PPL’s short interest could indicate that fewer investors expect the stock to fall from its current price levels. The short interest indicates the number of a company’s shares that have been sold short and not squared off yet. ## Bollinger Bands PPL stock is trading 4% above its lower Bollinger Band level. PPL’s 20-day moving average level is at $29.3, while its upper Bollinger Band is at $31.8. When a stock’s price falls to the lower level of the Bollinger Band and trades near its support level, technical analysts see it as an entry point. When the stock’s price reaches the upper level of the Bollinger Band and trades near its resistance level, analysts might see it as an exit point. We have used the 20-day simple moving average levels to calculate the Bollinger Bands. Continue to Next Part Browse this series on Market Realist: * Part 1 - PPL Stock Looks Attractive Compared to Its Peers * Part 3 - What PPL’s Implied Volatility Trends Indicate * Part 4 - PPL Stock: Analysts’ Recommendations
Why PPL Stock Looks Attractive Compared to Its Peers ## PPL’s valuation After a steady rally in the last few months, profit-booking took utilities down. The recent weakness in these defensives could be an opportunity for investors due to their discounted valuation. PPL (PPL), a mid-sized regulated utility, is trading at a forward PE ratio of 11x based on analysts’ EPS estimates for 2019. PPL appears to be trading at a discounted valuation considering broader utilities’ average valuation close to 16x–17x. ## PPL stock looks attractive PPL’s five-year historical average valuation is ~14x. PPL stock looks attractive compared to its historical valuation. PPL’s management expects its EPS to grow 5% annually for the next few years—in line with the industry average. PPL’s regulated operations bode well for stable and predictabile earnings. PPL stock offers a dividend yield of 5.8%—the highest among the top utilities with an average yield of ~3.4%. To learn more, read How PPL’s Dividend Profile Looks Going into 2019. Xcel Energy (XEL), PPL’s peer and one of the top regulated utilities, is trading at a forward PE ratio of 18x—marginally lower than its five-year historical average. Consolidated Edison (ED) stock trades at a forward PE ratio of 17x. PPL stock underperformed its peers in 2018. The stock fell 8%, while the Utilities Select Sector SPDR ETF (XLU) rose 2% last year. Xcel Energy stock rose marginally, while Consolidated Edison fell 9% in 2018. Continue to Next Part Browse this series on Market Realist: * Part 2 - What Do PPL’s Chart Indicators and Short Interest Suggest? * Part 3 - What PPL’s Implied Volatility Trends Indicate * Part 4 - PPL Stock: Analysts’ Recommendations
AES (AES) is currently trading at a dividend yield of 3.8%, higher than utilities’ (XLU) average yield of 3.4%. AES’s five-year average dividend yield is close to 2.8%. It declared a per share dividend of $0.137 on December 10, and the ex-dividend date for it is January 31.
According to analysts’ estimates, Southern Company (SO) stock has a median target price of $46.9, which indicates an estimated upside of ~7% for the next year. Currently, the stock is trading at $43.9.
PPL (PPL) expects fair annual earnings growth for the next few years, of ~5%–6%, which could facilitate dividend growth. Its expected dividend growth of 4% aligns with peers’ average. PPL’s earnings and dividend growth estimate looks achievable, considering its ~7% expected rate base growth through 2020. PPL generates more than 60% of its revenue from the United Kingdom, and customer and regulatory diversification bodes well for its earnings.
PPL’s (PPL) dividend increase in February was its 16th annual increase in 17 years. Its payout ratio was 75% last year—higher than its five-year average of 65%. Payout ratios represent how much of a company’s profit is distributed to shareholders as dividends. US utilities’ (XLU) average payout ratio is generally ~65%–70%.
Analysts expect PPL’s (PPL) dividend to grow ~4% next year, and broader utilities’ to grow ~4%–6% on average. The company expects its EPS growth to be ~5%–6% through 2020—well within the peer average range—which could facilitate its targeted dividend growth. PPL has a long dividend payment history, having paid cash dividends for the last 291 quarters. Utility giants Southern Company (SO) and Duke Energy (DUK) are anticipating similar dividend growth in the next few years.
NEW YORK, Dec. 31, 2018 -- In new independent research reports released early this morning, Market Source Research released its latest key findings for all current investors,.
Utilities came to the rescue amid market turmoil in the last two months, and with their higher dividend yields and slow stock price movements, they outperformed broader markets this year. In this series, we’ll look PPL (PPL), the highest-yielding utility stock. Whereas PPL’s current dividend yield is ~5.8%, its five-year average is ~4.6%, and broader utilities’ (XLU) average yield is ~3.4%. On January 2, PPL is expected to pay a quarterly dividend of $0.41, which is 4% higher than its dividend in the same quarter last year.
PNM Resources (PNM) continues to improve its quality of services. In this regard, it adds a new technology to its existing operation.