- The stock market looks to be growing more defensive, providing an opportunity for investors to buy utilities stocks, says Morgan Stanley analyst Michael Wilson in upgrading the sector to Outperform.
- The fact that the S&P 500 has underperformed rising earnings is a harbinger of decelerating growth, and bond yields that appear to be topping out is a sign that the market "may start to rotate more defensively." Wilson writes.
- Morgan Stanley has Overweight ratings on American Electric Power (NYSE:AEP), FirstEnergy (NYSE:FE), NextEra Energy (NYSE:NEE), NextEra Energy Partners (NYSEMKT:NEP), PG&E (NYSE:PCG), Public Service Enterprise Group (NYSE:PEG) and Xcel Energy (NYSE:XEL).
- Meanwhile, Moody’s cuts its outlook for U.S. regulated utilities to negative from stable for the first time, as debt levels rise and cash flows dwindle.
- ETFs: XLU, UTG, VPU, GUT, IDU, BUI, FUTY, RYU, UPW, PSCU, FXU, SDP, PUI, FUGAX, JHMU, BUYN, UTLF, XU
Utilities sector upgraded at Morgan Stanley as riskier stock market looms
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About AEP Stock
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| Symbol | Last Price | % Chg |
|---|---|---|
| AEP | - | - |
| American Electric Power Company, Inc. | ||