Value investors often like to find gems among lackluster sectors. In 2015, the most floundering is Utilities. According to Morningstar, these stocks have gained 0.33% year-to-date, far below the next lowest performing, Energy, which gained 6.36%.
In addition, the largest utilities ETF, the Utilities SPDR (XLU, Financial), declined 10.74% year to date. The sell-off reverses a trend for the industry, following a 27% gain for 2014 in which it was the best-performing U.S. sector.
Unglamorous utilities, which include electric, gas and water companies, often offer high dividends, and their trailing 12-month earnings per share grew 42.43% compared to the last 12 months.
In the first quarter, the utilities stocks the most guru investors purchased were: Cleco Corp (CNL, Financial), ALLETE Inc. (ALE, Financial), American Electric Power Co. Inc. (AEP, Financial) and Abengoa Yield Plc (ABY, Financial).
Four gurus purchased Cleco Corp in the first quarter: Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio). Jim Simons (Trades, Portfolio) had the largest position, increasing it by 64.7% to 592,400 shares.
Cleco Corp was incorporated on Oct. 30, 1998, under the laws of the State of Louisiana. Cleco Corp has a market cap of $3.29 billion; its shares were traded at around $54.38 with a P/E ratio of 21.24 and P/S ratio of 2.57. The dividend yield of Cleco Corp stocks is 2.93%. Cleco Corp had an annual average earnings growth of 5.60% over the past 10 years.
Four gurus also purchased ALLETE shares: David Dreman (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Bill Frels (Trades, Portfolio). Bill Frels (Trades, Portfolio) holds the largest position, with 291,417 shares after a 9.54% increase.
ALLETE Inc. a Minnesota corporation was incorporated in 1906. Allete Inc. has a market cap of $2.36 billion; its shares were traded at around $48.41 with a P/E ratio of 16.46 and P/S ratio of 1.84. The dividend yield of Allete Inc. stocks is 4.09%. Allete Inc. had an annual average earnings growth of 3.8% over the past 10 years.
American Electric Power Co. Inc. (AEP, Financial)
Five gurus purchased shares of American Electric Power: Paul Tudor Jones (Trades, Portfolio), Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Pioneer Investments (Trades, Portfolio) and Ruane Cunniff (Trades, Portfolio). Pioneer Investments (Trades, Portfolio) had the largest position, with 2,690,292 shares, after a 7.72% increase.
American Electric Power Co. Inc. was incorporated under the laws of the State of New York in 1906 and reorganized in 1925. American Electric Power Co. Inc. has a market cap of $26.13 billion; its shares were traded at around $53.34 with a P/E ratio of 15.30 and P/S ratio of 1.52. The dividend yield of American Electric Power Co. Inc. stocks is 3.91%. American Electric Power Co. Inc. had an annual average earnings growth of 1.20% over the past 10 years.
Abengoa Yield Plc (ABY, Financial)
Four gurus purchased Abengoa Yield Plc shares: John Keeley (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and NWQ Managers (Trades, Portfolio). Louis Moore Bacon (Trades, Portfolio) holds the largest position, with 173,351 shares after a 12.57% increase.
Abengoa Yield Plc is incorporated December 17, 2013 in United Kingdom. Abengoa Yield Plc has a market cap of $2.83 billion; its shares were traded at around $35.33 with a P/E ratio of 309.89 and P/S ratio of 6.77. The dividend yield of Abengoa Yield Plc stocks is 2.52%.
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