Geopolitical tensions, rising interest rates, record-high inflation and muted demand are some of the major issues that are plaguing the capital markets currently. In these turbulent times, an expert’s guidance can be of immense help in the stock market.
Today, in our Expert Spotlight piece, we bring to you an analyst from the Utilities sector, who has generated consistent returns over and above the index.
Based out of New York, Shelby Tucker is the Managing Director of RBC Capital Markets. In his 30-year career, he has worked with major market players like Oppenheimer, Banc of America Securities, Citigroup, UBS and Moody’s Investors Service.
An alumnus of Georgetown University’s McDonough School of Business, Tucker has an MBA degree in finance. He completed his graduation in Computer Science from Brown University.
Tucker’s Ranking on TipRanks
The TipRanks Star Ranking is based on an expert’s success rate, the average return generated, and statistical significance that gives higher weightage to a higher number of transactions or recommendations made by an expert.
According to the same, Tucker ranks second among the Utilities sector analysts. Impressively, Tucker has secured a ranking of 106 out of 7,897 analysts in the TipRanks universe.
With a success rate of 71% on TipRanks, Tucker has enjoyed an average return of 10.6% over the past year. Although the analyst has underperformed the S&P 500 Index by 3.8% over the past year, he has generated an alpha of 0.7%, compared to the Utilities sector over the same period.
According to TipRanks, Tucker’s most profitable pick has been AES Corporation (AES), between April 2, 2020, and April 2, 2021, which generated a whopping return of 91.6%.
Let’s have a closer look at some of Tucker’s top picks that have helped him in generating such benchmark beating returns.
Public Service Enterprise Group (NYSE: PEG)
Based out of Newark, NJ, Public Service Enterprise Group is a diversified energy company established in 1985. Its largest subsidiary is the Public Service Electric and Gas Company, New Jersey’s oldest and largest investor-owned utility.
In its latest first-quarter results, the company posted mixed results. Revenues for the quarter came in at $2.31 billion, down 20% year-over-year. Earnings stood at $1.33 per share, up 4% from the year-ago quarter.
The company’s dividend yield of 3.1% is above the sector average of 2.79%.
Recently, Tucker reiterated a Buy rating on the stock with a price target of $76, which implies upside potential of 10.6% from current levels.
With a success rate of 88%, the analyst has rated the stock a total of 39 times. Further, he has generated an average profit of 14% on the stock.
Sempra Energy (NYSE: SRE)
Based out of San Diego, CA, Sempra is an energy infrastructure company with a focus on electric and natural gas infrastructure. At the end of 2021, the company had total assets of more than $72 billion and nearly 40 million customers.
The company recently reported its first-quarter results. Its revenues for the quarter came in at $3.8 billion, up 17.2% year-over-year. However, earnings declined 1.4% from the year-ago period to $2.91 per share.
Sempra’s dividend yield of 2.8% is slightly above the sector average of 2.79%.
Recently, Tucker reiterated a Buy rating on the stock with a price target of $178, which implies upside potential of 7.2% from current levels.
With a success rate of 78%, Tucker has rated the stock a total of 58 times. The analyst has generated an average profit of 11.5% on the stock.
The Utilities sector’s outperformance is expected to continue for a while on the back of rising oil prices and the high dividend yield of companies in this sector. Taking this into account, Shelby Tucker’s picks in the sector could prove to be beneficial.
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