FTS is a stable utility company, with a good market cap of $27B, a decent forward P/E of 17.2X, and a strong yield of 4.3%. Most utility stocks sold off over the past few months due to fears of 'higher-for-longer' and elevated interest rates, however, we believe that this presents a good buying opportunity in utility stocks as expectations for rates can change rapidly, and its yield of 4.3% can become suddenly attractive.
NTR is expected to see mixed growth in the coming years, and its margins and sales growth have waned in the past 12 months. Its valuation is fairly cheap at a 10.9X forward earnings and 1.1X price to book. Free cash flows are strong, but recent earnings have been weak. Its momentum has been negative, and we would prefer to wait until its price finds support or earnings and guidance improve. It continues to be one of the larger companies in the TSX and has performed well over the years, but it is cyclical and we would prefer to wait until momentum improves.