Below are the three companies in the Multi-Utilities industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.
PG&E (NYSE:PCG) is highest with an earnings yield of 8.7%. PG&E Corporation is a holding company that holds interests in energy based businesses. The Company's holdings include a public utility operating in northern and central California that provides electricity and natural gas distribution, electricity generation, procurement, and transmission, and natural gas procurement, transportation, and storage.
PG&E has overhead space with shares priced $40.65, or 9.2% below the average consensus analyst price target of $44.78. The stock should run into initial resistance at its 50-day moving average (MA) of $41.31 and subsequent resistance at its 200-day MA of $43.32.
Following is Public Service Enterprise Group (NYSE:PEG) with an earnings yield of 8.0%.
Finishing up the top three is Ameren (NYSE:AEE), with an earnings yield of 7.8%.