Start the conversation
Over the last 30 days, one sector had its best month of the year.
And no, it wasn't tech...
This sector outperformed the S&P 500 by 6% and is worth paying attention to now.
This could be the start of a trend that lasts the rest of the year and possibly into 2021.
Investing in this sector isn't necessarily a long-term buy and hold, as much as it is a trade for the next three to six months.
We're talking about the utilities sector.
Now, we know some investors think this is a relatively boring space to invest.
But boring and predictable is good in a volatile and unpredictable market - like the one we find ourselves in today. Especially as we head into the election cycle...
I'll show you why this sector is so hot right now, and then I'll reveal the best utility stock to buy right now.
Let's take a look at the Utilities Select Sector SPDR Fund (NYSEARCA: XLU).
Just yesterday (Oct. 21), the XLU indicated bullish technical momentum when its 50-day moving average crossed through its 200-day moving average.
This is known as a "Golden Cross" and typically predicts positive gains are on the way because the shorter-term moving average is accelerating faster than the longer-term moving average.
While the sector is showing signs of a breakout, you can do even better by drilling down on the best utility stocks.
And the one we're showing you today just completed a golden cross of its own.
Here it is...
Our Best Utility Stock to Buy Now
Headquartered in Juno Beach, Fla., NextEra Energy Inc. (NYSE: NEE) is the largest electric utility company in the United States, with a market cap of $145 billion.
The company distributes power in Florida though its subsidiaries Florida Power & Light (FPL), NextEra Energy Resources, NextEra Energy Partners, Gulf Power Energy, and NextEra Energy Services.
FPL is the largest of its subsidiaries, contributing over 60% of the company's total earnings by delivering electricity to approximately 10 million people in Florida (about half the state).
What makes NextEra so interesting is that NEE has been leading the way in the renewable energy space.
NextEra operates over 14,100 megawatts (about 30% of its entire output) of emissions-free wind energy with plans to expand its renewable energy portfolio.
NEE recently reported Q3 2020 earnings yesterday (Oct. 21). And the company knocked it out of the park.
It beat EPS by 11% and raised forward guidance by 10% year over year. That's about double the average growth of most utility companies, which typically grow around 4% to 6% per year.
Most importantly, NEE stock is up about 2% after the earnings beat and finds itself in the same bullish technical momentum pattern as XLU.
Just today, NEE experienced a golden cross where its 50-day moving average crossed through its 200-day moving average.
NextEra's strong earnings report combined with its bullish technical momentum make the stock a strong buy for a trade now through the end of the year and possibly into early 2021.
If you plan on holding the stock for the long-term, you can collect a solid 2% dividend yield along the way too.
NEE has increased its dividend every year since 1994, so the company is about as reliable as they come.
If you're looking to generate even more yield for your retirement, check this out...
Is This the Retirement Catch-Up Americans Have Been Looking For?
Have you seen this new extra income hack yet?
Everyday Americans have been making 100%, 200%, 500%, or more... sometimes in a matter of days with this one new strategy.
Some of them are retiring from their jobs because of it. Others have paid off all their debt and bought their dream homes.
You can see their stories for yourself right here.
Follow Money Morning on Facebook and Twitter.
Or to contact Money Morning Customer Service, click here.