Guess the Stock E62 | Discover undervalued high-dividend utilities
Buying utilities has been expensive in recent years, and now it's probably not. With the spike in long-term interest rates, the industry has been hammered and is in one of its worst bear markets in decades. The sector has gone from 20% overvalued to 20% undervalued, which offers a potential opportunity for buying utilities.
Let's dive into the companies that could lead or be impacted by this trend without further ado!
Question:
1) What companies do Company A, Company B, and Company C refer to, respectively?
2) What are Companies A, B, and C ranking in terms of Market Capitalization?
Reference answer form: A>B>C or A<B<C or C<A≈B (within 10% deviation)
3) What investment opportunities do you see in the industry?
Company A
◼️ The company was incorporated in 1941 and is headquartered in Rapid City, South Dakota.
◼️ It operates in two segments: Electric Utilities and Gas Utilities.
◼️ Its Electric Utilities segment generates, transmits, and distributes electricity to approximately 220,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming; its Gas Utilities segment distributes natural gas to approximately 1,107,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming.
Company B
◼️ This company was incorporated in 1902 and is headquartered in Williamsville, New York.
◼️ It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility.
◼️ Its Utility segment sells natural gas or provides natural gas utility services to approximately 754,000 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania.
Company C
◼️ The company operates regulated utilities that provide water, wastewater, or natural gas services in the United States.
◼️ It serves approximately 8.8 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, West Virginia, and Kentucky under the Aqua and Peoples brands.
◼️ The company was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
How to Participate:
Add the stock tickers (e.g., $Tesla(TSLA.US)$), plus the Market Cap comparison and any comments on the above industry/companies to your answers. Further investment ideas are also welcome.
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2) Cash Coupons: 3 users who give the best-quality comments will get USD 2 / SGD 2.8 cash coupons. (You can share investment ideas, trading experiences, and/or your analysis of companies.)
*Plagiarized answers will not be rewarded.
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费北敬 : 1)
a. $Black Hills Corp (BKH.US)$ 3.40B
b. $National Fuel Gas (NFG.US)$ 4.95B
c. $Essential Utilities (WTRG.US)$ 8.86B
2) A,3.40B > B,4.95B > C,8.86B
3) Oil & Gas become expensive with the current situation in Middle East, might be a good opportunity investing in oil market
kaikai7171 : 1)
a. $Black Hills Corp (BKH.US) $3.4 billion
b. National Fuel Gas (NFG.US) US$4.95 billion
c. $Essential Utilities (WTRG.US) $8.86 billion
2) A,3.40B > B,4.95B > C,8.86B
3) With the current situation in the Middle East, oil and gas are becoming expensive, which could be a good opportunity to invest in the oil market
mr_cashcow : 1) A. $Black Hills Corp (BKH.US)$ Mkt cap: 3.397B
B. $National Fuel Gas (NFG.US)$ Mkt cap: 4.95B
C. $Essential Utilities (WTRG.US)$ Mkt cap: 8.856B
Mkt cap sauce: Yahoo finance
2) Mkt cap: C>B>A
3) Bonus warm tips: $Black Hills Corp (BKH.US)$ share price dropped 25% last year, that's well below the market return of 18%. It is down 16% in the last 3 years. This doesn't look good at all
$National Fuel Gas (NFG.US)$ is down -17% year to date to slightly trail the Utility-Gas Distribution Industry’s -12% but many believe it is undervalued considering it is essential services plus the strengthening prospects of the broader utility sector makes it a good "buy-the-dip" candidate
$Essential Utilities (WTRG.US)$ is set to acquire the water system in Greenville, PA, for $18m. This acquisition will add ~3k new water customers to the company’s customer base. Sounds like good news to me
Disclaimer: As usual I am NOT a qualified FA & all the above are NOT financial advises, plz DYOR/DD
schipperde : A. $BKH.US
B. $NFG.US
C. $WTRG.US
A > B > C
now is good time to buy oil and gas
151675339 : 1.
A. Black Hills Corporation
B. National Fuel Gas Company
C. Essential Utilities Inc
2.C>B>A
3. It is a public utility company, and as the population grows, the more people using it, the more it is worth investing in.
102103706 : Question 1
a. $Black Hills Corp (BKH.US) $3.40B
b. $National Fuel Gas (NFG.US) $4.95B
c. $Essential Utilities (WTRG.US) $8.86B
Market Cap comparison: C> B> A
Question 2
I feel that company A has the most potential of the three companies. I am not a fan of exploration as it depends highly on luck. For company C, there is limited growth to water service considering that it is an essential necessity and would be of the government interest to keep is affordable.
sociable Dingo_8604 : 1) A. $Black Hills Corp (BKH.US)$
B. $National Fuel Gas (NFG.US)$
C. $Essential Utilities (WTRG.US)$
2) Mkt cap: C > B > A
3) $National Fuel Gas (NFG.US)$ pays dividends on a quarterly basis. The latest dividend payment was on October 13, 2023 of 0.495 per share . National Fuel Gas Company ( NFG ) has increased its dividends for 51 consecutive years.
Over the last three years, NFG has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. NFG boosted its trailing twelve month EPS from US$5.42 to US$6.11, in the last year.
Diversifying into utilities like NFG is a great stock to consider investing in as they pay consistent dividends and with improved performance. DYODD as usual!
12moon : 1) A. $Black Hills Corp(BKH.US)$ Mkt cap: 3.4B
B. $National Fuel Gas(NFG.US)$ Mkt cap: 4.95B
C. $Essential Utilities(WTRG.US)$ Mkt cap: 8.86B
2) A<B<C
3) These stocks represent buying opportunities for oil and gas plays amidst the Israel-Hama crisis.
Ryan_Chan : 1
A. $Black Hills Corp (BKH.US) $3.4 billion
B. National Fuel Gas (NFG.US) US$4.95 billion
C. $Essential Utilities (WTRG.US) $8.86 billion
2) Market limit: C > B > A
3) Because of the war factor, we have to consider the long term. Currently, A and B are worth investing in. Comparing the current returns would be very objective, but in the short term. But if it's a long-term investment, I think c would be more appropriate. After all, tap water is what everyone needs
MNTradez : A. $Black Hills Corp (BKH.US)$
B. $National Fuel Gas (NFG.US)$
C. $Essential Utilities (WTRG.US)$
A<B<C
They appear to be established utility companies that pay modest dividends. The energy sector overall isn't performing very well for a myriad of reasons, but a new U.S. president that is pro-america and energy independence should help it rebound.
Edit: I didn't know $ was hyperlink code. I added it to help clarify my answer.
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