Investing in utility stocks like Atmos Energy Corporation (ATO), American Water Works Company, Inc. (AWK), National Grid plc (NGG), California Water Service Group (CWT) and Eversource Energy (ES) is a safe bet amid ongoing market volatility.
In practically any market environment, utility stocks make sense. As I’ve said countless times before, bad things happen when people flip the switch and light fails to emerge. Further, short of food and water, nothing could be more critical than essential services. However, when the economy – while booming in one respect from the blistering job numbers – is facing challenges such as inflation and high interest rates, people tend to monitor their spending. However, they can’t cut the essentials.
National Grid (NGG) makes a strong case for investment, given its earnings growth prospects, debt management and ability to increase shareholders' value.