This article will be the Final article in a series where I look for stocks I think will do well this upcoming year. In this article I am focusing on Utilities stocks and to screen for them I will use the same criteria that I used in a previous article of mine for finding stocks in the financial sector. Because there was only one stock that matched my criteria and I wanted at least two, I had to slightly modify my criteria. The difference between the criteria I used to search for financial stocks and utilities was I eliminated the price-to-book criteria, and lowered the dividend yield from 3% to 1%.
For my search I used the free stock screener from FinViz.com and used the following screener settings:
- I selected only stocks in the Conglomerates category.
- Companies with a market capitalization of $2 Billion or greater.
- A PEG (Price/Earnings to Growth ratio) of less than 2.
- Positive Return on Assets.
- Positive Return on Equity.
- Positive EPS growth this year.
- Positive EPS growth quarter over quarter.
- Positive Sales growth this year.
- Positive Sales growth quarter over quarter.
- Long Term debt/Equity ratio of less than 1.
- Dividend Yield of greater than 1%.
Two companies met all of the above criteria, and they are listed below with a short business summary, PE ratio, and dividend yield from Yahoo Finance, and 1-year performance from FinViz.com:
EQT Corporation Common Stock (EQT)
EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. EQT Corporation has a PE of 15.75 and a dividend yield of 1.80%.
1 Year Performance: +5.15%
Hawaiian Electric Industries, I (HE)
Hawaiian Electric Industries, Inc., through its subsidiaries, primarily engages in electric utility and banking businesses primarily in Hawaii.Hawaiian Electric has a PE of 19.05 and a dividend yield of 4.80%.
1 Year Performance: +9.86%
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective. The information provided is not intended to be a complete analysis of every material fact respecting any strategy. The examples presented do not take into consideration commissions, tax implications or other transactions costs, which may significantly affect the economic consequences of a given strategy. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular.