Why Utility Stocks Like Duke Energy Got Zapped Today
Monday wasn't a good day to have utilities in a stock portfolio. Many of these titles took it on the chin, following a notable pop in the value of certain safe-haven investments.
Among the sector's decliners on the day were Duke Energy (NYSE: DUK), Dominion Energy (NYSE: D), and NextEra Energy (NYSE: NEE). The trio's share prices fell by 3.2%, 5.3%, and a steep 9%, respectively. All did worse than the bellwether S 500 index, which essentially ended the day flat.
It's relatively straightforward to predict a great many financial metrics for utilities, since they are all subject to rate caps and tend to have a customer base that grows slowly, at best. As a result, their fundamentals aren't very volatile; it's safe to say almost no one buys a utility stock in the hope that a company will suddenly enjoy a windfall profit.
Source Fool.com
