Utilities Industry Analysis
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Long Term Potential

Investor Survey (help)

SWOT Strengths > SWOT Weaknesses?
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SWOT Opportunities > SWOT Threats?

Utility ETF Funds

US ETF Funds

First Trust Utilities ETF (FXU)
Merrill Lynch Utilities ETF (UTH)
iShares Utilities ETF (IDU)
PowerShares Utilities (PUI)
ProShares Utilities (UPW)
UltraShort Utilities (SDP)
S&P Equal Weight Utilities ETF (RYU)
SPDR Utilities (XLU)
Vanguard Utilities ETF (VPU)

Non - US ETF Funds

Emerging Utilities (EUT)
iShares Global Utilities ETF (JXI)
S&P Intl Utilities ETF (IPU)
WisdomTree Intl Utilities (DBU)

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Index of Utility Companies

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Research Report

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Utility Industry Analysis (edit / improve) Description: The utility industry includes companies whose sales come from the administration of public services such as water and power. Valuation Analysis: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with positive potential. The Main Street analysis says a Buy, with SWOT strengths great than weaknesses and SWOT opportunities greater than threats. Trade Analysis: Denmark is a major area of utility innovation, especially for the generation of power. Main utility commodities include coal, natural gas, crude oil, and uranium. Profit Conclusion: The utility industry tends to be less sensitive to economic cycles, because public services are essential to industrial and residential consumers. Look to buy undervalued utility investments and sell overvalued utility investments during any part of the business cycle.

Investment Impacts (help)

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Denmark Country Analysis (edit / improve) Denmark (DKK) has a highly productive, capitalist economy and above average European living standards. Currency Analysis: Denmark is very overvalued according to the purchase price parity analysis. Investment flows, interest rate parity and inflation rate parity also point to an overvalued currency. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom, diversity, and government transparency. Trade Analysis: Finland, Sweden, Norway, the UK, and the Netherlands are the top trading partners. Commodity Analysis: Denmark is a service-based economy that relies little on commodity exports. SWOT Analysis: A flexible labor market is the main SWOT strength for Denmark and the Eco-Grid project is the main opportunity. Profit Conclusion: An overvalued currency, low investment flow potential, but favorable business environment leads to a neutral outlook for Denmark’s investments.

Commodity Investment Impact

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Coal Commodity Analysis (edit / improve) Coal is the largest source of fuel used to produce electricity in the world. Coal is also one of the largest sources of carbon dioxide emissions. Commodity Analysis: Coal is rated a Buy. Coal demanders have a high potential to grow, while coal suppliers have low potential in increase. Investor Survey: Coal’s long term growth potential is moderately favorable due to high scores on sensitivity to price changes and low sources in short supply and substitute products. SWOT Analysis: Strength: Coal is the largest source of energy worldwide; Weakness: coal produces considerable pollution. Opportunity to grow: coal’s widespread use could aid growth as the world economy grows; Threats to growth: alternative forms of clean energy may compete against coal. Profit Conclusion: The commodity analysis buy rating indicates that coal should increase in price over the short term, whereas a moderately favorable investor survey means coal may not increase in price over the long term.

- Coal is a dirty fuel. Unless technology can limit the pollution from coal, it might decline in use over the long term.

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Natural Gas Commodity Analysis (edit / improve) Natural gas is a significant fuel source used to produce electricity in the world. It primarily consists of methane gas. Commodity Analysis: Natural is rated a hold. Natural gas demanders have a high potential to increase in value, while natural gas suppliers also have high potential in increase in value. Investor Survey: Natural gas’s long term growth potential is favorable due to high scores on difficulty to expand in the short term and sensitivity to price changes. SWOT Analysis: Strength: Natural gas is a cheap fuel source, especially in the US; Weakness: natural gas produces considerable pollution. Opportunity to grow: natural gas could produce hydrogen fuel, which is a substitute for gas in cars; Threats to growth: alternative forms of clean energy may compete with natural gas. Profit Conclusion: The commodity analysis hold rating indicates that natural gas should stay the same price over the short term, whereas a moderately favorable investor survey means natural gas should increase in price over the long term.

- Natural gas produces less pollution than coal and natural gas power planets can power up much quicker.

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Crude Oil Commodity Analysis (edit / improve) Crude oil is used to produce fuel oil and gasoline. Gasoline is the largest supplier of fuel for internal combustion engines. Commodity Analysis: Crude oil is rated a Sell. Crude oil demanders have a moderate potential to increase in value and crude oil suppliers have a very high potential to increase in value. Investor Survey: Crude oil’s long term growth potential is very favorable due to high scores on sensitivity to price changes, demand not sensitive to price changes, and the SWOT analysis. SWOT Analysis: Strength: Limited natural resource / supply; Weakness: Emits carbon dioxide. Opportunity to grow: the overall growth of vehicles will increase demand for crude oil; Threats to growth: environmental concerns could slow growth potential in the near term. Profit Conclusion: The commodity analysis sell rating indicates that crude oil prices should decrease over the short term, whereas a very favorable investor survey means crude oil prices increase over the long term.

- Crude oil is volatile in price and comes from unstable regions of the world.

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Uranium Commodity Analysis (edit / improve) Uranium has two main uses: 1. as a military weapon used to penetrator armor; 2. as a power source used in nuclear plants. Commodity Analysis: Uranium is rated a Buy. Uranium suppliers have low potential to increase in value; therefore, supply could decrease over time. Investor Survey: Uranium’s long term growth potential is very favorable due to high scores on sensitivity to price changes and difficulty to expand in the short term. SWOT Analysis: Strength: Uranium is the main fuel for nuclear power plants, which are expected to grow over the long term; Weakness: nuclear waste is a negative effect of using uranium fuel. Profit Conclusion: The commodity analysis buy rating indicates that uranium should increase in price over the short term, while a very favorable investor survey means uranium should increase in price over the long term.

- Uranium does not produce harmful green house gases, but it's use, transportation and waste is dangerous.