Electric utilities have never been the most exciting opportunities in the stock market, but lately, one stock in the group has been underperforming the stock market as a whole, and performing particularly poorly relative to its peers to boot: Consolidated Edison (NYSE: ED ) . Why?
Three reasons.
Consolidated Edison is average -- at best
When you stack up Consolidated Edison stock up against two of its bigger rivals -- American Electric Power (NYSE: AEP ) and Duke Energy (NYSE: DUK ) -- at first glance, ConEd doesn't look all that bad. Its dividend yield, 4%, is smack-dab in the middle between AEP's 3.8% yield and Duke's 4.2%. Similarly, ConEd's free cash flow yield, sandwiched between those of AEP and of Duke, looks pretty average.
5 Best Performing Stocks To Invest In Right Now: TNS Inc.(TNS)
TNS, Inc. a data communications company, provides networking, managed connectivity, data communications, and value added services in the United States and internationally. The company?s Telecommunication Services division operates Signaling System No. 7 (SS7) network that provides call signaling and database access services. This division offers network solutions, such as SS7 and Internet protocol network services; identification and verification services; registry services; and roaming and clearing services. Its Payment Services division offers network connectivity services that enable transmission of card-based payments data between the point of sale device or off-premise automated teller machine and the processor?s host computer; card-present and card-not-present payment gateway solutions; and value added services comprising settlement file transfer, offline polling, outsourced payment processing, and card scheme gateways, as well as operates a software platform. This segment markets its services directly to payment processors, financial institutions, card associations, and merchants in North America, Europe, and the Asia-Pacific; and data communications services to entities that engage in the transmission of state lottery transactions, federal and state electronic benefits transfer, and healthcare transactions, as well as directly to merchants and retailers. The company?s Financial Services division provides data network services to the financial services industry. This segment connects approximately 1,800 financial community end-points located at approximately 625 distinct financial services companies representing buy and sell-side institutions, market data and software vendors, exchanges, and alternative trading venues. TNS, Inc. serves telecommunication firms, retailers, banks, payment processors, and financial institutions. The company was founded in 1990 and is headquartered in Reston, Virginia.
5 Best Performing Stocks To Invest In Right Now: Camco Financial Corporation(CAFI)
Camco Financial Corporation operates as the bank holding company for Advantage Bank that provides various financial products and services in Ohio, Kentucky, and West Virginia. The company offers a range of deposit products, including interest-bearing and non-interest bearing checking accounts, money market deposit accounts, regular savings accounts, health savings accounts, term certificate accounts, and retirement savings plans. It also provides commercial real estate and business loans; consumer loans; conventional fixed-rate and adjustable-rate mortgage loans for the construction, acquisition, or refinancing of single-family residential homes; and construction and permanent mortgage loans on condominiums, multi-family, and nonresidential properties. As of May 4, 2011, the company operated 22 offices. Camco Financial Corporation was founded in 1970 and is headquartered in Cambridge, Ohio.
5 Best Stocks For 2014: SORL Auto Parts Inc.(SORL)
SORL Auto Parts, Inc., through its principal operating subsidiary, Ruili Group Ruian Auto Parts Co., Ltd., engages in the development, manufacture, and distribution of automotive brake systems and other safety related auto parts for commercial vehicles, such as trucks and buses. The company, through its 90% ownership in Ruili Group Ruian Auto Parts Co., Ltd., a Sino-foreign joint venture, offers various products, including spring brake chamber, clutch servos, air dryers, relay valves, and hand brake valves. It also provides auto metering products, auto electric products, anti-lock brake systems, retarders, hydraulic brakes, and power steering products. SORL Auto Parts, Inc. markets its products under the SORL brand to automotive original equipment manufacturers and the related aftermarket customers in the People?s Republic of China and internationally. The company was founded in 2003 and is headquartered in Ruian City, the People?s Republic of China.
Advisors' Opinion:- [By Robert Hsu]
Sorl Auto Parts (NASDAQ: SORL) has purchased the assets of the hydraulic brake, power steering, and automotive electrical operations of Ruili Group Auto Parts. As a result of this acquisition, Sorl’s product offerings will expand to both commercial and passenger vehicles’ brake systems and other key safety-related auto parts. The company expects it will allow the company to streamline its management organization, as well as create efficiencies in production, R&D and its sales network. In addition, Sorl’s management expects the acquisition will be beneficial to the company’s revenues and earnings.
Sorl paid 170 million yuan — or about $25 million — for the acquisition, and the company believes it will generate about $35 million in revenues and about $4 million in net income in 2011. In addition, Sorl expects the acquisition to generate incremental free cash flow in both 2010 and 2011. SORL has outperformed earnings estimates for four consecutive quarters, and its stock price rose 71.7% over the past 12 months.
Now, the chairman and CEO of Sorl Auto, Xiao Ping Zhang, is also the controlling shareholder of the Ruili Group. However, the price paid for the acquisition was based on a valuation of the purchased business performed by Asia’s leading appraisal company, DTZ Debenham Tie Leung — lessening the possibility of a conflict of interest with regards to the sale.
Overall, I think this was a good purchase by Sorl. The acquisition will allow the company to offer its customers more high-quality products to fulfill their needs from one source. In addition, because both companies share similar visions, I expect the combination of their internal resources will create favorable economies-of-scale that will strengthen earnings and create shareholder value. Buy SORL under $10.
5 Best Performing Stocks To Invest In Right Now: Republic Bancorp Inc.(RBCAA)
Republic Bancorp, Inc. operates as the holding company for Republic Bank & Trust Company and Republic Bank, which provides banking, tax refund solutions, and mortgage banking services to individuals and businesses in the United States. The company offers a range of deposit products, including demand deposits, money market accounts, brokered and Internet money market accounts, savings deposits, individual retirement accounts, time deposits, and certificates of deposit. It also provides single family residential real estate loans; commercial loans; residential construction real estate loans; and consumer loans, which consists of home improvement and home equity loans, as well as secured and unsecured personal loans. In addition, the company offers private banking services; treasury management services, such as lockbox processing, remote deposit capture, business online banking, account reconciliation, and automated clearing house processing services; Internet banking service s and products through its Website, republicbank.com; and trust, title insurance, and other financial institution related products and services. Further, it provides tax refund solutions that include the payment of federal and state tax refunds through third party tax preparers. The company facilitates the payment of these tax refunds through refund anticipation loans, electronic refund checks, and electronic refund deposits. Its mortgage banking activities comprise origination and sale of loans in the secondary market, and the servicing of loans for others. As of December 31, 2009, the company had 44 banking centers, including 35 located in Kentucky; 5 located in metropolitan Tampa, Florida; 3 located in southern Indiana; and 1 located in metropolitan Cincinnati, Ohio. Republic Bancorp, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.
5 Best Performing Stocks To Invest In Right Now: Altius Minerals Corp (ALS.TO)
Altius Minerals Corporation operates in the mining and resources sector in eastern Canada. It owns various exploration stage royalty interests in properties prospective for nickel-copper cobalt, iron ore, uranium, gold, and other base metals; and holds active mineral exploration agreements targeting various mineral commodities. The company also has investments in junior exploration and development stage companies. Altius Minerals Corporation was founded in 1997 and is headquartered in St. John�s, Canada.
Energy sector will always pay you back so it is very important that you must invest in energy sector to get maximum returns in future.
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Bruce Hammerson
Hydraulic Hammers