Q2 earnings reporting season is coming up fast. And while no one is projecting blockbuster gains, certain baseline expectations must be met, and preferably beaten. Regulated utilities with posted earnings guidance offer the easiest benchmarks for gauging progress. Those updating in the past month offer the best odds of avoiding nasty surprises, always key to dodging downside.
Stocks’ recovery since late March looks a lot more like a “V” than it did a month ago. And after breaking through resistance this month, the S&P 500 is now just 6.3 percent from making a new all-time high.
Utility stocks have also perked up lately. As a group, they’ve lagged since mid-April. Nonetheless, we’ve seen some spectacular recoveries among Portfolio holdings.
Most CUI Portfolio stocks have run in place since the April issue. But the past month has been far from uneventful, with 34 of 38 recommended companies reporting their first results and guidance updates since COVID-19 fallout hit the scene.
In investing, it’s common for good years to follow good years, and great years often follow average or poor ones. But historically great years like what we’ve just enjoyed at Conrad’s Utility Investor rarely if ever come back to back.
US/China trade deal optimism has gained steam this month. That’s pushed up the yield on the 10-year Treasury bond to its highest level since late July. And the result has been a mini-sector rotation out of many dividend-paying stocks.
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Roger's current take and vital statistics on more than 200 essential-services stocks.