Utility companies are thriving
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Orsted may pay dividend again after several years
Orsted, the Danish renewable energy utility, recently published its Q2 earnings report, which showed mixed results. The company exceeded analysts’ expectations in terms of both revenue and EBITDA, but fell short of net income estimates. Nonetheless, project developments are on track, and the company’s liquidity position remains adequate. In light of the results, management maintains its 2026 guidance, and announced dividend payment plans for 2027. Overall, Orsted keeps making good progress, so we are keeping the stock on our Equity Top Pick List.
Commodities - Technical Analysis
Gold and silver have broken their downtrends, triggering upward waves that still hold potential for further gains. After a strong retest, the oil price may settle into a range, but there are still opportunities for further gains. Natural gas prices did not reach a new low, but no pattern indicating a reversal has yet emerged. Copper is maintaining its upward trend; it must rise again within the next few days, or the rally could break down. Wheat and corn are also beginning to turn upward again from key support levels after strong retests.
This week, only the utilities sector was able to defy the downward market trends. It outperformed other sectors in a way not seen in a long time. This factor may also point to risk aversion on the US stock markets. This week, we highlighted Xcel Energy and PEG stocks among the winners.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Xcel Energy (daily): The stock has been on an upward trend for some time now. The 75 level was an important support, as it did not fall below it but managed to bounce off it in recent days, so it could move permanently from the 50-75 range to the 75-100 range. The target price can therefore be set at around 100. A break in the rising green trend line would be problematic from a long perspective.
Public Service Enterprise Group (daily): After a long period of correction and accumulation, we are seeing strong buying signals. The price rose above 81.25, giving a long signal. Based on the previous pattern, a new peak is definitely possible. If we take the upward trend pattern that started in early 2024 as a basis, the target price could be around 106.25.
List of stocks with a chance of a turnaround in the coming weeks
Not a single paper met the screening criteria this week.
Most popular US stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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