Top 2 Utilities Stocks That Could Blast Off In January
Portfolio Pulse from Avi Kapoor
PNM Resources, Inc. (PNM) and Middlesex Water Company (MSEX) are identified as oversold utilities stocks with their RSI values below 30, indicating potential undervaluation. PNM's merger with Avangrid was terminated due to lack of regulatory approvals, causing its stock to drop about 6% over five days. MSEX reported a decline in Q3 sales and anticipates 2023 as a transition year, with its stock falling about 8% over five days.
January 05, 2024 | 11:55 am
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POSITIVE IMPACT
Middlesex Water Company's stock fell around 8% following a decline in Q3 sales, with an RSI of 29.85 indicating it may be oversold and could interest value investors.
The decline in sales and subsequent stock price drop, coupled with an RSI close to 30, may suggest that MSEX is undervalued. This could attract buyers looking for a bargain, possibly driving up the stock in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 85
POSITIVE IMPACT
PNM's terminated merger with Avangrid and a 6% stock decline over the past five days may attract investors looking for undervalued stocks, with an RSI of 26.49 signaling potential overselling.
The termination of the merger and the recent stock price decline could lead to increased investor interest as the stock may be perceived as undervalued. The low RSI supports this view, potentially leading to a short-term rebound.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90