The electricity sector in the national equity markets is undoubtedly one of the most bullish in recent years. With a profitability that has approached levels of 50%, one of the highest in the Spanish selective index, the Ibex 35. To the point that small and medium investors have been able to double their investments. At this time, the question is to know if this positive trend can be maintained in the coming years. Although it is assumed that not with the intensity that has revealed so far.
Therefore, it is a good time to find out who are the members of this important sector of the Spanish economy. With a very specific weight on the evolution of the most important indices of the national stock market. Where it is very important to emphasize that these values are highly valued for their highly defensive or conservative component. Because it is one of the sectors that move the most titles every day. With countless small and medium investors who choose this special kind of investment.
It is a segment that is characterized because all its members are very well identified. In other words, they are on the lips of all investors and they are all listed on the Ibex 35, a fact that differentiates it from other very powerful sectors. To the point that one of them is already the first capitalization value of national equities. Having a very specific weight on the behavior of the Spanish stock market, in one sense or another.
Electricity sector, Iberdrola
The company with the highest valuation and which has gone from trading 6 to 9 euros per share in a few months. After having appreciated by about 40%Although the best of all is that its technical aspect is still impeccable and encourages taking positions. It has become the security with the highest level of hiring in recent months. To the extent that it is a source of reference within the sector and for all investors. Not surprisingly, at the moment its target price is at levels of 11 euros. With which it still has an upward journey, and quite deep and that small and medium investors can take advantage of.
Endesa or the strength of dividends
Another of the large electricity companies within the Ibex 35 and which in this case stands out because it is the most profitable it offers per dividend. Around a fixed annual return of 7%, which makes it very suitable for the most conservative or defensive investors in the financial markets. At the moment they are already trading near levels of 24 euros and also with an excellent technical aspect that has not deteriorated in recent months. With a revaluation in the last year of 30% and that has led to positions that were little than unimaginable in the past year. With the possibility of visiting even the 27 euro level.
Naturgy more linked to gas
It is the third of the values of the electricity sector, but in this case it also focuses its business line on gas and its derivatives. In any case, and although its rise is less, it has reached levels of 22 and 23 euros per share. In addition, it also distributes a dividend that is very attractive as it generates an interest rate close to 6%. While on the other hand, it is more sensitive than the previous values to its exposure to gas derived products. For this reason, its price is carried away by other variables than the price of electricity. In any case, it has the favorable opinion of a good part of the financial analysts who see how it is apt to take positions in the markets.
Enagás the most punished
This company with completely national capital and is a natural gas transport company and technical manager of the Spanish gas system. It has been characterized by the strong downward pressure before the summer that has led it to go from 27 euros per share to 18. Something exceptional in is a value as stable as it is until now. But it seems that it has returned to bullish positions and is one of the most recommended by intermediaries in the equity markets. Not surprisingly, it is not the same as the electricity companies that we have referred to previously.
On the other hand, it has a very attractive dividend yield that is around 8%, after the last declines in the stock market. With the advantage that everything seems to indicate that the worst has already happened in the configuration of their prices. With a potential for revaluation that all sources point to may reach 27%, which would imply a good option to integrate it into our securities account for the end of the year. Where it can give us more joys than negative surprises.
Red Eléctrica the electricity pool
The results of the Red Eléctrica Group have followed the line of its strategic objectives during the first six months of 2019. The company has reached a net profit of 362 million euros and a turnover of 993 million euros. On the other hand, Red Eléctrica has maintained high solvency ratios as its net financial debt stood at 4.485,9 million euros, which has been reduced by 4,2% compared to December 2018.
While on the other hand, the availability of the transmission network of the Spanish electricity system is one of the highest in the world: 98,2% in the peninsula and 97,4% in the Balearic Islands and 98,8% in the Canary Islands . The company has reached this level thanks to an efficient and responsible management of the operation and transport that allows covering the daily contingencies of the system. Not surprisingly, it is not the same to the electricity companies that we have referred to previously, but on the contrary, it has a substantially different investment point.