CenterPoint Energy, Inc. (CNP), EQT Corporation (EQT): Throwing the Baby Out With The Bathwater

EQT Corporation (NYSE:EQT) also noted a year-on-year boost from what was termed a more “normal” winter; according to their NOAA reference, Q1 of 2012 was the “warmest on record”. CenterPoint Energy, Inc. (NYSE:CNP)’s gas operations similarly benefitted. Consequently, Q1 was an easy beat on expectations for gas utility companies. Q2 will offer a stiffer challenge. As a seasonally weaker quarter, Q2 chances for a ‘disappointment’ is likely to be quiet high, but given the existing discounts in Utility stock prices, it might not amount to too much.

Summary

Utility stocks are experiencing an extended period of selling pressure, and negative price action attracts negative news items. However, Utilities have reached a point where they are now one of the more attractive sectors to be buying: yields are attractive, P/E ratios are competitive, and Buffett is a buyer.

Declan Fallon has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Throwing the Baby Out With The Bathwater originally appeared on Fool.com and is written by Declan Fallon.

Declan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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