A utility stock is often a good investment because of the moat and the potential for dividends, but these stocks also respond inversely to the economy. Utilities may do good business, but as the market rises they tend to get left behind when investors get confident and seek more adventurous waters. Now is a good time to check under the hood and get ready for when a great deal presents more »
The CAPS Stock Screener is one of my favorite tools, because adding the views of peers (CAPS Star Rating) can always be helpful. Today we're going to look at some 5 Star Utilities, and come up with a winning investment. Additional criteria on this preliminary screen included P/E (0-20), Dividend Yield (>3%), and Return on Equity (>10). Here are the 5 star competitors.
Company Market Cap P/E more »
Covanta (NYSE: CVA) uses waste that would otherwise be sent to landfills to produce electricity (the company has about 1 million residential customers in North America) as well as to extract some metals for re-use. At a market capitalization of $2.3 billion, the company trades at 32 times earnings, which is a bit high but could be appropriate for a “next generation” type of company.
However, so far the more »