4 Low PE Utility Stocks To Buy For Uncertain Markets
Zacks Investment Research | Sep 19, 2016 10:26PM ET
The global financial market conditions remain choppy thanks to the ongoing crude price volatility, lower-than-expected recovery in some regions and Britain’s vote to exit the EU. The upcoming U.S. Presidential Election is further contributing to the uncertainty, while the strong dollar continues to hurt U.S. manufacturers by making their products costlier than their global peers.
In such a scenario, investing in fundamentally strong but undervalued stocks might be a prudent option. Utilities typically have stable cash flows that ensure regular dividends, making them a popular target for those seeking safety and high returns.
Utilities also benefit from the domestic orientation of their business, which shields them from foreign currency translation issues — a major headwind for many other industries. These companies provide basic services like electricity, gas and water, which is why they can never go out of business.
Let’s focus on a few utility stocks with a low P/E ratio, which enjoy a reputation for safety even when markets are volatile.
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