Five Utilities Stocks to Buy Now

#4 Verizon Communications Inc. (NYSE:VZ)

– Investors with Long Positions (as of December 31): 52

– Aggregate Value of Investors’ Holdings (as of December 31): $2.45 billion

Though the number of investors covered by us with long positions in Verizon Communications Inc. (NYSE:VZ) fell  11.8% during the fourth quarter, the aggregate value of their holdings saw only a marginal decline of 2.8% during the same period. With ownership of 15 million shares of the company, Warren Buffett‘s Berkshire Hathaway continued to remain Verizon Communications.’s largest shareholder at the end of December among the funds tracked by us. Owing largely to the earnings and revenue beat for the fourth quarter, shares of Verizon Communications Inc. (NYSE:VZ) are currently trading up almost 14% year-to-date. On March 4, the company launched three separate cash tender offers to raise up to $11.6 billion in debt. Most analysts that cover Verizon Communications feel that it has very little downside risks because it trades at a trailing P/E of 12.18, much below the telecom industry’s average of 20.07 and, along with that, sports an attractive annual dividend yield of 4.24%. On March 14, analysts at Citigroup  reiterated their ‘Neutral’ rating on the stock, but upped their price target to $54 from $49.

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#3 Cheniere Energy, Inc. (NYSEMKT:LNG)

– Investors with Long Positions (as of December 31): 54

– Aggregate Value of Investors’ Holdings (as of December 31): $5.83 billion

Shares of Cheniere Energy, Inc. (NYSEMKT:LNG) have tanked by over 50% in the past year, however, it remained one of the most popular utility stock among hedge funds at the end of December. The ownership of the company among funds tracked by us fell by eight and the aggregate value of their holdings in it declined by nearly $1.29 billion during the fourth quarter. Billionaire activist investor Carl Icahn‘s Icahn Capital LP increased its stake in Cheniere Energy, Inc. (NYSEMKT:LNG) by 15% during the fourth quarter to 32.68 million shares, which represented nearly 14% of all outstanding shares of the company. In December last year, Cheniere Energy’s Board fired CEO Charif Souki and replaced him with an interim CEO, which many on the Street believe was done at the behest of Mr. Icahn, who just several months earlier had got two of his nominees appointed on the company’s Board. The rebound in the broader market and oil prices in the past few weeks has helped Cheniere Energy’s stock to recover its losses as it now trades marginally down for the year. On March 4, analysts at JPMorgan Chase & Co. initiated coverage on the stock with an ‘Overweight’ rating and $54 price target.

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