As Markets Near Record Highs, 3 Utility Stocks Flashing Buy

Core Viewpoint - Utility stocks are positioned as defensive investments amid high market indices, making them attractive for potential corrections [1][9]. Group 1: Utility Stocks Overview - Three utility stocks have been added to the Zacks Rank 1 (Strong Buy) list recently, indicating strong investment potential [2]. - Utility stocks are essential services, providing electricity, water, and gas, which remain in demand regardless of economic conditions [9]. Group 2: National Fuel Gas Company (NFG) - NFG is a prominent natural gas distributor and a "Dividend King," having increased its dividend for over 50 years, with a current annual dividend yield of 3.8% [10]. - The stock trades at 10.6X forward earnings, significantly lower than the S&P 500's 23.5X and the industry average of 14X, with expected earnings rebounding by 15% in fiscal 2025 to $5.83 per share [11]. Group 3: Primo Water - Primo Water is a pure-play water solutions provider with a projected annual earnings increase of 53% in FY24 to $0.95 per share, compared to $0.62 last year, and a further 16% increase in FY25 [5]. - Earnings estimate revisions for FY24 and FY25 have risen by 8% and 3% respectively over the last 60 days, with a 1.7% annual dividend yield that has been increased 13 times in the past five years [12]. Group 4: Veolia Environnement - Veolia Environnement is the only global company offering a full range of environmental services, with total sales expected to rise by 8% in FY24 and another 2% in FY25 to $49.85 billion [7]. - The stock is trading at $15 and 7.3X forward earnings, with annual earnings projected to increase by 207% this year to $2.18 per share, and a further 12% rise in FY25 [13].