The same day that Moody’s Investors Service lowered its outlook for utilities, based on rising debt, investment banker Morgan Stanley says it’s a good time to load up on some utility stocks.
Morgan Stanley analyst Michael Wilson has upgraded the utility sector to “outperform” the broader stock market. Low-risk stocks, such as those for utilities, represent a good value in a market where already high prices and the possibility of trade wars makes a defensive posture a sensible course of action. He says that the fact that the S&P 500 has underperformed rising earnings is anticipatory of decelerating growth, he says.
Wilson ranks the following utility stocks as “overweight,” stock talk for a stock that is a better value for the money than others. Wilson likes American Electric Power, FirstEnergy, Nexera Energy, PG&E Corp., Public Service Enterprise Group, and Xcel Energy.
–Kennedy Maize