4 Utility Stocks to Play Safe as Markets Brace for Black Monday

Wall Street is bracing for a bad start to the week, with investors fearing a repeat of the 1987 Black Monday that could make last week’s losses look too mild in comparison. Experts have warned of more bloodbath if President Donald Trump doesn’t take immediate action on his sweeping tariffs announced last week.This came as the Asian markets tanked on Monday morning (Sunday night U.S. time), with Japan’s Nikkei tanking 8%, while Singapore and Hong Kong were down 8.5% and 10%, respectively. Investors are currently clueless about how markets will react in the coming days.Given this situation, it would be wise to invest in safe-haven stocks like utilities. In this regard, Avista Corporation AVA, CMS Energy Corporation CMS, Exelon Corporation EXC and Southwest Gas Holdings, Inc. SWX are lucrative buys. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The stocks are also from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank.Black Monday Back Again?Experts believe that Monday could be the most brutal for Wall Street in decades. It could witness a potential repeat of 1987’s Black Monday when markets plunged 22.6% to record one of the worst days in financial history and be more dismal than the 2008 crash.All three major indexes — Dow, S&P 500 and Nasdaq — are expected to open 6% lower on Monday, which could make last week’s $6.6 trillion wipeout look minuscule. Trump’s sweeping tariffs have wreaked havoc globally, and investors are scrambling for direction as trade partners of the United States gear up for retaliatory tariffs.However, Trump said on Monday that he was not intentionally influencing a market selloff and would not make any deal with other countries till trade deficits are solved. He also said that more than 50 countries have already approached the White House to initiate trade talks and enter into negotiations.However, markets are likely to suffer till they are assured that the new tariffs won’t impact the economy’s health and fears of it slipping into a recession ease.4 Utility Stocks With UpsideAvista CorporationAvista Corporation is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is AVA’s operating division that provides electric service customers and natural gas customers. Avista’s  service territory covers eastern Washington, northern Idaho and parts of southern and eastern Oregon.  Avista Corporation has an expected earnings growth rate of 14% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the past 60 days. AVA currently sports a Zacks Rank #1. Avista Corporation has a beta of 0.38 and a current dividend yield of 4.81%.CMS Energy CorporationCMS Energy Corporation is an energy company. It is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer.CMS Energy Corporation has an expected earnings growth rate of 7.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CMS currently carries a Zacks Rank #2. CMS Energy Corporation has a beta of 0.34 and a current dividend yield of 2.99%.0Exelon CorporationExelon Corporation is focused solely on transmission and distribution operations. EXC will be serving more than 10 million customers through seven fully regulated transmission and distribution utilities—Atlantic City Electric Company, Baltimore Gas and Electric Company, Commonwealth Edison Company, Pepco Holdings LLC, Delmarva Power & Light Company, PECO Energy Company and Potomac Electric Power Company.Exelon Corporation has an expected earnings growth rate of 6.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 60 days. EXC currently carries a Zacks Rank #2. Exelon Corporation has a beta of 0.39 and a current dividend yield of 3.53%.Southwest Gas HoldingsSouthwest Gas Holdings, Inc. is a regulated utility that provides natural gas services and has a wholly owned subsidiary, the Paiute Pipeline Company, through which it operates a pipeline transmission system. SWX makes deliveries of natural gas under a priority system established by state regulatory commissions, which targets higher-priority customers, primarily residential customers, while other customers who use 500 therms or less of gas per day are given greater importance.Southwest Gas Holdings has an expected earnings growth rate of 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. SWX currently has a Zacks Rank #2. Southwest Gas Holdings has a beta of 0.50 and a current dividend yield of 3.60%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report CMS Energy Corporation (CMS): Free Stock Analysis Report Southwest Gas Corporation (SWX): Free Stock Analysis Report Avista Corporation (AVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks