Utilities ETFs Behave On Fed Rate Hike Talk

Looking ahead, FactSet projects the utilities sector is expected to experience earnings growth of 4.4% in 2016. Consequently, analysts warned that the lofty prices may not be supported by robust earnings growth.

The trailing 12-month PE ratio for utilities of 19.85 is now higher than that of the more volatile technology sector at 19.16.

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If the Dow Jones Utilities Average “holds above 670-ish, the road should lead higher. Although, a detour toward the low-650′s level that marked the breakout of the January 2015 highs would not be a shock. On the upside, the index may run into roadblocks in the low-700′s and at the highs around 724. And if the index is going to break out of this recent range, in either direction, it will likely take, as the sign in the photo says, some serious work ahead by the utilities,” according to See It Market.

For more information on Utility ETFss, visit our Utility ETFs category.

Utilities Select Sector SPDR