Infrastructure improvements are boosting profits at utilities and, thus, prospects for investors, two experts tell Consumers Digest.
“A lot of the infrastructure was so old, the repairs were necessary to keep systems safe and reliable,” says Andy Pusateri of Edward Jones, but the repairs also help earnings growth.
Andy Smith of Edward Jones says utilities that have a big presence in renewable energy are good bets, because that sector is growing faster than are other sectors, regardless of the Trump administration’s decision to withdraw the United States from the Paris climate-change accords.
Pusateri and Smith like Avangrid (NYSE: AGR; Price: $45.58) and NextEra Energy (NYSE: NEE; Price: $144.65). Both companies have strong positions in wind power—NextEra also is invested heavily in solar power—and the two analysts say both companies are eager to expand.