While we recently highlighted the benefits that summer heat can bestow on some companies, not all will be treated so favorably by the season’s swelter.
If you live in any part of the country that has been effected by near triple digit temperatures this week, chance are that you have received a message from your electric company asking you to monitor your consumption during this time. While these companies have exorbitant use of cooling systems in mind, they also want to avoid running the risk of having their electrical grids collapse as a result of excessive usage.
Business Section: Investment Ideas
It appears that markets are already reacting to the strain being put on these utility firms. Each of the top ten electrical companies in the United States has seen share price of their stock drop in value this week. While it may hurt consumers’ wallets to operate air conditioners for long periods of time, it crimps the profit margins of electrical companies even more.
Based on this evidence, it proves valuable to watch heat waves as they occur over the summer and as they could potentially deal a negative blow to electrical companies’ stock value. Listed below are the five largest electrical companies by market capitalization.
1. 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.
3. Wisconsin Energy Corp. (WEC, Earnings, Analysts, Financials): Engages in the generation, distribution, and sale of electric energy and steam. Market cap at $8.97B, most recent closing price at $38.94.
4. Ameren Corporation (AEE, Earnings, Analysts, Financials): Operates as a public utility company in Missouri and Illinois, the United States. Market cap at $8.06B, most recent closing price at $33.23.
5. SCANA Corp. (SCG, Earnings, Analysts, Financials): Engage in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. Market cap at $6.24B, most recent closing price at $47.85.
Written by Dan Connelly
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Dig Deeper: Access Company Snapshots, Charts, Filings
- PG&E Corp. (PCG, Chart, Download SEC Filings)
- Consolidated Edison Inc. (ED, Chart, Download SEC Filings)
- Wisconsin Energy Corp. (WEC, Chart, Download SEC Filings)
- Ameren Corporation (AEE, Chart, Download SEC Filings)
- SCANA Corp. (SCG, Chart, Download SEC Filings)
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