Top 10 Utilities Stocks With Declining Short Interest

Because of the recent economic turmoil, most investors are bearish about the market, thus betting against the market by increasing their short positions. But there are still a few stocks that experienced decreasing short interest, indicating that the majority of the investors are getting increasingly optimistic about these stocks.

Below, we compiled a list of 10 utilities stocks with declining short interest. The market data are sourced from Fidelity. All companies in this list have at least 1% open interest and short interest in these companies declined over the past month. These stocks are in utilities sector and have at least $3 Billion in market cap.

Company Name	Symbol	Open Interest	Change in Short Interest	YTD Return
DPL INC.	DPL	1.15%	-26.76%	20.76%
CALPINE CORP	CPN	2.24%	-23.94%	13.22%
ATMOS ENERGY CORP	ATO	2.11%	-8.11%	10.11%
DOMINION RESOURCES INC.	D	1.98%	-4.16%	19.38%
NISOURCE INC.	NI	2.16%	-0.76%	28.24%
AQUA AMERICA INC	WTR	3.73%	-5.13%	-1.35%
INTEGRYS ENERGY GROUP	TEG	4.50%	-5.51%	5.43%
DUKE ENERGY CORP	DUK	3.65%	-1.06%	13.12%
CONSOLIDATED EDISON	ED	4.60%	-3.19%	19.24%
WESTAR ENERGY INC.	WR	10.69%	-7.74%	6.41%

These 12 stocks have an average return of 13.46% vs. -3.54% for SPY since the beginning of this year. Except WTR, all other stocks have positive returns during the same period.

Here are the top 10 utilities stocks with declining short interest.

DPL Inc (DPL): DPL is a regional energy company. DPL has an open interest of 1.15% and its short interest declined 26.76% last month. It has a market cap of $3.55B, a P/E ratio of 14.95, and gained 20.76% since the beginning of this year. Douglas Hirsch and Jim Simons are the main holders of DPL (check out Simons’ top stock picks).

Calpine Corp (CPN): Calpine is an independent wholesale power company in the United States. CPN has an open interest of 2.24% and its short interest declined 23.94% last month. It has a market cap of $7.06B, a P/E ratio of 68.1, and gained 13.22% since the beginning of this year. John H. Scully and Jean-Marie Eveillard are the main holders of CPN.

Atmos Energy Corp (ATO): Atmos Energy is engaged in the regulated natural gas distribution and transmission and storage businesses. ATO has an open interest of 2.11% and its short interest declined 8.11% last month. It has a market cap of $3.03B, a P/E ratio of 15.48, and gained 10.11% since the beginning of this year.

Dominion Resources Inc (D): Dominion is a producer and transporter of energy. D has an open interest of 1.98% and its short interest declined 4.16% last month. It has a market cap of $28.35B, a P/E ratio of 17.08, and the stock gained 19.38% since the beginning of this year. Phill Gross and Robert Atchinson hold the biggest position in D.

NiSource Inc (NI): NiSource is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services. NI has an open interest of 2.16% and its short interest declined 0.76% last month. It has a market cap of $6.25B, a P/E ratio of 20.22, and gained 28.24% since the beginning of this year. Israel Englander and Jim Simons hold the biggest position in NI (check out Englander’s top stock picks).

Aqua America Inc (WTR): Aqua America is the holding company for regulated utilities providing water or wastewater services. WTR has an open interest of 3.73% and its short interest declined 5.13% last month. It has a market cap of $3.04B, a P/E ratio of 21.56, and lost 1.35% since the beginning of this year. Chuck Royce and Jim Simons hold the biggest position in WTR.

Integrys Energy Group Inc (TEG): Integrys Energy Group is a diversified energy holding company with regulated natural gas and electric utility operations, and non-regulated energy operations. TEG has an open interest of 4.50% and its short interest declined 5.51% last month. It has a market cap of $3.92B, a P/E ratio of 16.10, and gained 5.43% since the beginning of this year. Jim Simons holds the biggest position in TEG.

Duke Energy Corp (DUK): Duke Energy is an energy company primarily located in the Americas. DUK has an open interest of 3.65% and its short interest declined 1.06% last month. It has a market cap of $25.81B, a P/E ratio of 12.74, and gained 13.12% since the beginning of this year. Michael Messner and Israel Englander hold the biggest positions in DUK.

Consolidated Edison Inc (ED): Consolidated Edison provides electric service in New York City and most of Westchester County. It also provides natural gas service in Manhattan, the Bronx, parts of Queens and Westchester. ED has an open interest of 4.60% and its short interest declined 3.19% last month. It has a market cap of $16.86B, a P/E ratio of 15.79, and gained 19.24% since the beginning of this year. Michael Messner and Israel Englander hold the biggest positions in ED.

Westar Energy Inc (WR): Westar Energy is an electric utility operating in Kansas. WR has an open interest of 10.69% and its short interest declined 7.74% last month. It has a market cap of $3.05B, a P/E ratio of 15.41, and gained 6.41% since the beginning of this year. Jim Simons and Steven Cohen hold the biggest position in WR (check out Cohen’s top stock picks).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.