U.S. power stocks charge ahead as risks mount
Mon Jun 4, 2007 7:02am EDT
NEW YORK (Reuters) - U.S. electricity company stocks have returned to health, posting market-leading returns over the past two years as steady economic growth helped work off a glut in supply and companies cleaned up their balance sheets. Over the past year, U.S. utility and power stocks have rallied 31 percent, and even with investor profit taking over the past few weeks, they have outperformed the broader Standard & Poor 500 index's 21 percent gain.
COMMENT: That is good news for investors, who saw the Standard & Poor's Utility index shed more than half its value in 2001 and 2002 on the gloom caused by the collapse of Enron Corp. Utility stocks have been the darlings of the market. BUT the industry faces new risks, from the growing movement to regulate carbon emissions.
Mon Jun 4, 2007 7:02am EDT
NEW YORK (Reuters) - U.S. electricity company stocks have returned to health, posting market-leading returns over the past two years as steady economic growth helped work off a glut in supply and companies cleaned up their balance sheets. Over the past year, U.S. utility and power stocks have rallied 31 percent, and even with investor profit taking over the past few weeks, they have outperformed the broader Standard & Poor 500 index's 21 percent gain.
COMMENT: That is good news for investors, who saw the Standard & Poor's Utility index shed more than half its value in 2001 and 2002 on the gloom caused by the collapse of Enron Corp. Utility stocks have been the darlings of the market. BUT the industry faces new risks, from the growing movement to regulate carbon emissions.
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