Research from Moody’s Analytics and the McKinsey Global Institute (see image below) shows the significant economic change in the major cities in the United States. While some cities have greatly expanded their economy, others have decreased. These changes have many affects for the cities in question, especially when it comes to providing adequate infrastructure to foster and maintain growth.
Taking that into consideration, we thought it would be prudent to find out what utility stocks corresponded with the cities with the highest growth. If economies continue to grow, the regions’ main utility providers could find themselves with the need to expand. They are also seeing higher demand.
The cities that have experienced the most growth and their utility providers are:
1. Phoenix, Arizona – Pinnacle West Capital Corporation (PNW):
2. San Jose, California - PG&E Corp. (PCG)
3. Atlanta, Georgia - Southern Company (SO)
4. Denver, Colorado - Xcel Energy Inc. (XEL)
5. Dallas, Texas - Private
6. Washington D.C. - Pepco Holdings, Inc. (POM)
7. San Diego, California - Sempra Energy (SRE)
Of this list, Dallas is the only city with a private gas and electric company.
Business Section: Investing Ideas
Excessive heat can hamper the profits of electric companies. Be sure to consider location and weather patterns when analyzing a utility stock.
Do you think these cities will continue to grow, and consequentially these utility companies?
1. Pinnacle West Capital Corporation (PNW, Earnings, Analysts, Financials): Provides retail and wholesale electric services primarily in the State of Arizona. Market cap at $5.65B, most recent closing price at $51.58. Phoenix.
2. PG&E Corp. (PCG, Earnings, Analysts, Financials): Operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. Market cap at $19.11B, most recent closing price at $45.24. San Jose.
3. Southern Company (SO, Earnings, Analysts, Financials): Operates as a utility company that provides electric service in the southeastern United States. Market cap at $41.37B, most recent closing price at $47.62. Atlanta.
4. Xcel Energy Inc. (XEL, Earnings, Analysts, Financials): Engages in the generation, purchase, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers, as well as to public authorities in the United States. Market cap at $14.B, most recent closing price at $28.75. Denver.
5. Pepco Holdings, Inc. (POM, Earnings, Analysts, Financials): Engages in the transmission, distribution, and supply of electricity. Market cap at $4.42B, most recent closing price at $19.37. Washington D.C.
6. Sempra Energy (SRE, Earnings, Analysts, Financials): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap at $16.26B, most recent closing price at $67.49. San Diego
Written by Ryan Horch
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Dig Deeper: Access Company Snapshots, Charts, Filings
- Pinnacle West Capital Corporation (PNW, Chart, Download SEC Filings)
- PG&E Corp. (PCG, Chart, Download SEC Filings)
- Southern Company (SO, Chart, Download SEC Filings)
- Xcel Energy Inc. (XEL, Chart, Download SEC Filings)
- Pepco Holdings, Inc. (POM, Chart, Download SEC Filings)
- Sempra Energy (SRE, Chart, Download SEC Filings)
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