The most oversold stocks in the utilities sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold players in ...

Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) is focused on investing in renewable generation assets to provide reliable services, making it a strong investment option in the Zacks Utility Electric Power industry [1] Group 1: Growth Projections - The Zacks Consensus Estimate for AQN's Q3 2025 revenues is $594.5 million, indicating a growth of 3.7% [2] - The estimated earnings per share (EPS) for 2025 is 31 cents, reflecting a year-over-year increase of 3.3% [2] - AQN has delivered an average earnings surprise of 4.86% over the last four quarters [2] Group 2: Debt Structure - AQN's total debt to capital ratio is 55.25%, which is better than the industry average of 59.39% [3] - The times interest earned (TIE) ratio at the end of Q2 2025 was 1.5, indicating the company can meet its interest obligations [3] Group 3: Liquidity Position - AQN's current ratio at the end of Q2 2025 was 1.09, suggesting the company can meet its short-term liabilities [4] Group 4: Return to Shareholders - AQN has been increasing shareholder value through dividends, currently paying 6.5 cents per share quarterly, leading to an annualized dividend of 26 cents [5] - The current dividend yield is 4.64%, outperforming the Zacks S&P 500 Composite average of 1.13% [5] Group 5: Customer Reach - AQN's Regulated Services Group manages a diverse portfolio across the U.S., Canada, Bermuda, and Chile, serving approximately 1,268,000 customer connections as of June 30, 2025 [6][8] - The company operates generating assets with a total gross capacity of about 2 gigawatts (GW) and holds investments in assets providing roughly 0.3 GW of net generation capacity [6] Group 6: Stock Performance - AQN shares have increased by 14.5% over the past six months, compared to the industry's growth of 8.5% [7]

Group 1 - The article discusses the importance of creating a portfolio that generates income without the need for selling assets, emphasizing a community-driven approach to investing [1][2] - There is a notable trend towards onshoring in American manufacturing, which is expected to influence investment dynamics in 2025 [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates, aimed at providing a supportive environment for investors [2][4] Group 2 - The article highlights the philosophy of community and education in investing, suggesting that collaboration can lead to better investment outcomes [2][4] - It mentions the presence of contributors who support the investment service, indicating a collaborative effort in providing investment recommendations [4] - The article does not provide specific investment recommendations or guarantees regarding future performance, focusing instead on the overall investment strategy [5]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]

Financial Data and Key Metrics Changes - Q2 adjusted net earnings from continuing operations were $36.2 million, down approximately 13% from $41.5 million in 2024 [11] - Q2 adjusted net earnings per share were $0.04, down from $0.06 in Q2 2024, with operationally flat results excluding one-time items [13] - Net earnings from the Regulated Services Group were essentially flat year over year, with growth from approved rates and reduced interest expense offset by various factors [11] Business Line Data and Key Metrics Changes - The Hydro Group saw a $5.8 million increase in net earnings primarily due to a one-time tax recovery finalized in Q1 [12] - The corporate side's adjusted net earnings decreased by $10.2 million mainly due to the removal of Atlantica dividends [12] Market Data and Key Metrics Changes - A total combined rate adjustment request of $73.6 million was made during the quarter, with notable filings in Arizona Litchfield Park Water and New England Natural Gas [6] - A $4.2 million revenue adjustment was approved for the company's water and wastewater facilities in Arizona, effective July 1 [8] Company Strategy and Development Direction - The company announced a three-year financial outlook focused on improving customer outcomes, driving operational efficiencies, and achieving constructive regulatory outcomes [7] - The company aims to become a premium pure play regulated utility, emphasizing investments in local communities and economic development [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and investing wisely in infrastructure for stakeholder benefit [14] - The management team is focused on cost discipline and operational efficiencies, with ongoing efforts to lower the overall cost profile [31] Other Important Information - The company is actively developing targeted investment plans aimed at driving economic progress across its service areas [10] - The executive management team has been strengthened with new appointments, enhancing the company's commitment to operational excellence [6] Q&A Session Summary Question: Anticipation of a portfolio update this year - Management confirmed a strategy update on the portfolio will be provided at the end of the year, with plans to attend the EEI financial conference in November [21] Question: Details on investment plans for economic progress - Management indicated that they are signaling their role as a utility in economic development and are engaging in conversations with states regarding this [23] Question: Updates on tax recoveries in the hydro business - Management stated that the majority of tax adjustments related to hydro were taken in Q1, with no further updates expected [26] Question: Additional hires for ongoing rate cases - Management mentioned that they are constantly evaluating if they have the right skills in place but will announce any new hires as they occur [28] Question: Progress on cost reduction plans - Management noted that efforts are underway, but specific outcomes will not be disclosed until they are reflected in quarterly results [31] Question: Update on hydro asset monetization - Management confirmed there are no updates on the process to potentially monetize hydro assets at this time [33] Question: Stakeholder engagement in Empire Electric proceedings - Management indicated that negotiations with stakeholders are ongoing, with timelines dependent on procedural schedules [38]

Core Insights - Algonquin Power & Utilities reported quarterly earnings of $0.04 per share, matching the Zacks Consensus Estimate, but down from $0.09 per share a year ago [1] - The company posted revenues of $527.8 million for the quarter, missing the Zacks Consensus Estimate by 0.44% and down from $598.63 million year-over-year [2] - The stock has increased approximately 33% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] Earnings Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.06, with expected revenues of $592.18 million, and for the current fiscal year, the estimate is $0.31 on $2.42 billion in revenues [7] Market Outlook - The earnings outlook and estimate revisions trend for Algonquin Power & Utilities were favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock [6] - The Utility - Electric Power industry is currently in the top 35% of Zacks industries, indicating a positive outlook for stocks within this sector [8]

Financial Performance - AQN's Net Earnings decreased by 90% to $17.4 million, compared to $180.1 million in the same period of the previous year[24] - AQN Adjusted Net Earnings decreased by 13% to $36.2 million, compared to $41.5 million in the same period of the previous year[24] - Adjusted Net Earnings per share decreased by 33% to $0.04, compared to $0.06 in the same period of the previous year[24] - Dividends per share declared to common shareholders decreased by 40% to $0.0650, compared to $0.1085 in the same period of the previous year[24] Rate Case Updates - BELCO was authorized an increase of $33.6 million out of a rate request of $59.1 million, implemented retroactively to Jan 1, 2024[38] - Granite State Electric was authorized an increase of $5.5 million out of a rate request of $15.5 million, implemented on April 1, 2025[38] - Midstates Gas in Missouri was authorized an increase of $9.1 million out of a rate request of $13.2 million, implemented on Jan 8, 2025[38] - Missouri Water was authorized an increase of $6.2 million out of a rate request of $8.1 million, implemented on Mar 1, 2025[38] - Various Water & Wastewater in Arizona was authorized an increase of $4.2 million out of a rate request of $6.0 million, implemented on July 1, 2025[38] Key Credit Adjustment Figures - S&P and Fitch selected debt adjustments include a deduction of $700 million for equity credit (50% of $1.4 billion hybrids) and $300 million for Empire securitization, with an addition of $90 million for preferred equity (50% of $180 million)[34] - Q2 debt stands at $6.3 billion[34]

Group 1 - Algonquin Power & Utilities (AQN) has outperformed its peers in the Utilities sector with a year-to-date return of 34.8%, compared to the sector average of 13.4% [4] - The Zacks Consensus Estimate for AQN's full-year earnings has increased by 8.8% over the past 90 days, indicating improving analyst sentiment [4] - AQN currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Group 2 - The Utilities group includes 108 companies, with Algonquin Power & Utilities ranked 3 in the Zacks Sector Rank [2] - AQN belongs to the Utility - Electric Power industry, which consists of 59 stocks, and is currently ranked 81 in the Zacks Industry Rank [6] - Stocks in the Utility - Electric Power industry have gained an average of 14.1% this year, indicating AQN's strong performance relative to its industry peers [6] Group 3 - Brookfield Renewable Energy Partners (BEP) is another Utilities stock that has shown strong performance, returning 15.3% year-to-date [5] - The consensus EPS estimate for Brookfield Renewable Energy Partners has increased by 13.8% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - Investors should continue to monitor both Algonquin Power & Utilities and Brookfield Renewable Energy Partners for potential sustained performance [7]

Group 1 - RBC Capital Markets raised the target price for Algonquin Power & Utilities Corp. from $6 to $6.50 while maintaining a "market perform" rating [1] - The company's new "Back to Basics" strategy outlines earnings per share targets before 2027, predicting an 8.5% return on equity and approximately 5% compound annual growth rate [1] - The strategic presentation by Algonquin Power's management exceeded investor expectations, particularly regarding the guidance for the company's outlook before 2027, leading to a nearly 16% stock price increase on June 3 [1] Group 2 - Algonquin Power's "Back to Basics" plan is a key initiative to strengthen its financial foundation and achieve stable growth in the coming years [2] - The company, headquartered in Oakville, Canada, focuses on regulated operations in electricity, water, wastewater, and natural gas systems [2]

Core Viewpoint - Algonquin Power & Utilities (AQN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in Algonquin Power & Utilities' earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in the underlying business of Algonquin Power & Utilities, which could lead to higher stock prices as investors respond positively [6]. Historical Performance of Zacks Ratings - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [8]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10][11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Algonquin Power & Utilities is expected to earn $0.31 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 8.8% over the past three months [9].