Tuesday, August 28, 2012

Top 20 Most Undervalued Utility Stocks by Analyst Target Price

The following is a list of the most undervalued utility stocks, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Yes, this is a crude way to find undervalued companies, but the goal here is to give you a starting point for your own analysis.

Analysts seem to think these stocks are deeply undervalued--what do you think? Full details below.

All data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

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The list has been sorted by the discount to average analyst target price.

1. Enersis S.A. (ENI): Foreign Utilities Industry. Market cap of $14.04B. Price at time of writing $21.42 vs. target price of $30.74 (discount of 30.32%). Short float at 0.2%, which implies a short ratio of 1.22 days. The stock has lost -5.66% over the last year.

2. Huaneng Power International Inc. (HNP): Electric Utilities Industry. Market cap of $6.47B. Price at time of writing $21.45 vs. target price of $29.22 (discount of 26.59%). Short float at 0.64%, which implies a short ratio of 3.52 days. The stock has lost -5.09% over the last year.

3. GenOn Energy, Inc. Common Stock (GEN): Electric Utilities Industry. Market cap of $1.45B. Price at time of writing $4.11 vs. target price of $5.14 (discount of 20.04%). Short float at 6.4%, which implies a short ratio of 3.17 days. The stock has lost -26.79% over the last year.

4. Clean Energy Fuels Corp. (CLNE): Gas Utilities Industry. Market cap of $918.25M. Price at time of writing $13.98 vs. target price of $17.29 (discount of 19.14%). Short float at 19.85%, which implies a short ratio of 8.14 days. The stock has lost -26.51% over the last year.

5. Companhia Paranaense de Energia (ELP): Electric Utilities Industry. Market cap of $7.37B. Price at time of writing $26.89 vs. target price of $33.0 (discount of 18.52%). Short float at 1.09%, which implies a short ratio of 3.26 days. The stock has gained 24.73% over the last year.

6. The AES Corporation (AES): Electric Utilities Industry. Market cap of $10.19B. Price at time of writing $13.02 vs. target price of $15.8 (discount of 17.59%). Short float at 0.84%, which implies a short ratio of 1.18 days. The stock has lost -8.23% over the last year.

7. Korea Electric Power Corp. (KEP): Electric Utilities Industry. Market cap of $16.4B. Price at time of writing $12.70 vs. target price of $15.0 (discount of 15.33%). Short float at 0.29%, which implies a short ratio of 2.48 days. The stock has lost -20.82% over the last year.

8. NRG Energy, Inc. (NRG): Electric Utilities Industry. Market cap of $5.B. Price at time of writing $20.23 vs. target price of $23.35 (discount of 13.36%). Short float at 4.06%, which implies a short ratio of 3.81 days. The stock has lost -15.88% over the last year.

9. Veolia Environnement S.A. (VE): Electric Utilities Industry. Market cap of $14.7B. Price at time of writing $30.58 vs. target price of $35.1 (discount of 12.88%). Short float at 0.24%, which implies a short ratio of 3.77 days. The stock has lost -17.99% over the last year.

10. American States Water Company (AWR): Water Utilities Industry. Market cap of $645.56M. Price at time of writing $34.94 vs. target price of $39.5 (discount of 11.54%). Short float at 3.01%, which implies a short ratio of 4.19 days. The stock has gained 1.94% over the last year.

11. American Electric Power Co., Inc. (AEP): Electric Utilities Industry. Market cap of $17.13B. Price at time of writing $35.58 vs. target price of $39.57 (discount of 10.08%). Short float at 0.96%, which implies a short ratio of 1.64 days. The stock has gained 3.45% over the last year.

12. California Water Service Group (CWT): Water Utilities Industry. Market cap of $774.88M. Price at time of writing $37.27 vs. target price of $41.33 (discount of 9.82%). Short float at 2.55%, which implies a short ratio of 5.67 days. The stock has gained 1.64% over the last year.

13. AGL Resources Inc. (AGL): Gas Utilities Industry. Market cap of $2.85B. Price at time of writing $36.59 vs. target price of $40.43 (discount of 9.5%). Short float at 3.71%, which implies a short ratio of 6.02 days. The stock has gained 4.13% over the last year.

14. Entergy Corporation (ETR): Electric Utilities Industry. Market cap of $13.17B. Price at time of writing $72.91 vs. target price of $80.56 (discount of 9.5%). Short float at 1.15%, which implies a short ratio of 1.3 days. The stock has lost -8.3% over the last year.

15. Empresa Nacional de Electricidad S.A. (EOC): Foreign Utilities Industry. Market cap of $14.65B. Price at time of writing $53.41 vs. target price of $58.8 (discount of 9.17%). Short float at 0.26%, which implies a short ratio of 2.85 days. The stock has lost -0.37% over the last year.

16. Sempra Energy (SRE): Gas Utilities Industry. Market cap of $12.47B. Price at time of writing $52.24 vs. target price of $57.41 (discount of 9.01%). Short float at 1.91%, which implies a short ratio of 3.01 days. The stock has lost -0.06% over the last year.

17. OGE Energy Corp. (OGE): Electric Utilities Industry. Market cap of $4.13B. Price at time of writing $45.13 vs. target price of $49.58 (discount of 8.98%). Short float at 1.14%, which implies a short ratio of 2.23 days. The stock has gained 27.23% over the last year.

18. CenterPoint Energy, Inc. (CNP): Diversified Utilities Industry. Market cap of $6.67B. Price at time of writing $15.71 vs. target price of $17.23 (discount of 8.82%). Short float at 1.37%, which implies a short ratio of 1.67 days. The stock has gained 13.78% over the last year.

19. ITC Holdings Corp. (ITC): Electric Utilities Industry. Market cap of $3.28B. Price at time of writing $64.29 vs. target price of $70.5 (discount of 8.81%). Short float at 2.8%, which implies a short ratio of 7.56 days. The stock has gained 23.69% over the last year.

20. TransCanada Corp. (TRP): Gas Utilities Industry. Market cap of $26.14B. Price at time of writing $37.51 vs. target price of $41.13 (discount of 8.8%). Short float at 0.22%, which implies a short ratio of 4.15 days. The stock has gained 14.9% over the last year.

Disclosure: No positions

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